Thailand's SEC Opens Digital Asset Regulatory Sandbox

On Friday Thailand's Securities and Exchange Commission (SEC) opened applications for its Digital Asset Regulatory Sandbox.

Thailand's Securities and Exchange Commission (SEC) has opened applications for its Digital Asset Regulatory Sandbox. The sandbox will allow participants to test innovative digital asset products and services that are not currently permitted by Thai law.

The term "digital asset" is used broadly in Thailand, and encompasses both cryptocurrencies and digital tokens. Cryptocurrencies are defined as being used as a medium of exchange, while digital tokens grant specific rights. These rights may include investment rights in a project or business (investment tokens) or the ability to receive goods, services or other rights (utility tokens). Thailand also has specific rules for real estate tokens.

The sandbox will cover both types of tokens and six roles, including digital asset broker, digital asset custodian and digital asset exchange.

To participate in the sandbox, applicants must have sufficient capital, adequate management and systems in place.

The trials will be limited in scope, given the potential riskiness of testing products and services that stretch the current regulatory perimeter. This may mean limiting the type of customers served, the number of customers or the total investment.

The trial period will be up to one year, although sandbox participants can apply for extensions.

In other related news, the Bank of Thailand launched a regulator sandbox for DLT-based programmable payments in June.

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