Thailand’s Securities and Exchange Commission () has amended the Securities and Exchange Act of 2019 to allow market players to participate in primary markets to trade digital securities. This according to a by the Bangkok Post published May 2, 2019.
Thailand Makes Way for Digital Businesses
In its quest to digitize the nuts and bolts of capital markets, Thailand’s SEC has tweaked the Securities and Exchange Act 2019 to introduce digital trading using . The use of blockchain technology will help the country’s booming financial sector to execute transactions in a more secure, rapid, and transparent manner.
Further, the amendments made to the Act also expand the coverage scope of scripless transactions beyond secondary markets to primary markets. For the uninitiated, is basically a trading system where settlement is carried out through book-entries rather than by the movement of physical securities.
Under the changes made to the Act, entrepreneurs can now choose to raise funds via security token offerings (), a funding method that has gained a lot of in recent times due to its several perceived benefits over initial coin offerings ().
Speaking to the Bangkok Post, SEC deputy secretary, Tipsuda Thavaramara said:
“This change will have a major impact as the amended Act provides a legal basis to support [the country’s capital market] the tokenization platform.”
She added:
“The law also opens opportunities for additional market players and supports the idea of entirely digital shares.”
Thavaramara identified two major challenges if the country’s financial market is to smoothly transition into a digital phase: preparing for the digitized world and ensuring a conducive platform for emerging players and ideas in the capital market.
Safeguarding Investors: The Thai Example
In the Indian subcontinent and South Asia region, Thailand stands as the odd one out for being a country which has openly embraced digital currencies rather than putting them under a .
BTCManager on January 10, 2019, how the Thai financial watchdog approved digital asset business licenses of four cryptocurrency exchanges.
In the same vein, emerged on March 13, 2019, of how Thailand’s SEC approved the country’s first ICO portal.
Published at Sat, 04 May 2019 06:00:04 +0000
