Thailand Implements Crypto Service Testing Sandbox
Thailand’s Securities and Exchange Commission (SEC) is introducing the Digital Asset Regulatory Sandbox in an attempt to enable developments and foster innovation that improve digital asset-related services.
Eligible digital asset-related services include Digital Asset Exchange, Digital Asset Broker, Digital Asset Dealer, Digital Asset Fund Manager, Digital Asset Advisor, and Digital Asset Custodial Wallet Provider.
Participants must however incorporate their innovations within the Thai capital market or engage in a sandbox provided by the money market regulatory agency according to a post on their website.
Keen companies are encouraged to apply and the SEC will evaluate their applications based on several factors including capital adequacy, management structure, and work systems.
Participants are also to state their specific scope of services for the Sandbox period to reduce any contagion risk that may arise.
This move follows the recent greenlit Thailand has given for the country’s first Bitcoin exchange-traded fund (ETF) allowing only accredited investors to gain exposure to Bitcoin through investments in 11 major global Bitcoin funds.
Thailand Joins Global Trend With First Bitcoin ETF
This move comes after similar launches in Hong Kong and the United States, marking a growing trend of regulatory acceptance for cryptocurrency-based investment products.
It appears that Thailand remains cautious about the cryptocurrency market given the revocation of Zipmex’s license recently by the SEC after financial instability and management deficiencies have been identified. Nevertheless, it is still a positive for the country towards embracing digital assets.
Zipmex Loses Thai Crypto License After Repeated Regulatory Violations
This move by the Thai Ministry of Finance, acting on the recommendation of the Securities and Exchange Commission (SEC), comes after a string of regulatory violations by Zipmex.
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