In response to the growing adoption of cryptocurrencies and the need for comprehensive regulation, Thailand’s financial authorities have taken a big step forward, and launched a regulatory sandbox.
A strategic move by Thailand’s SEC
The introduction of this regulatory sandbox follows a careful approach by Thailand’s SEC, which began earlier this year.
The groundwork for this initiative was laid in March when the SEC Board approved the first concept of the Digital Asset Regulatory Sandbox.
This was followed by a public hearing in May, during which stakeholders and the general public provided feedback on the proposed regulations.
The majority of respondents supported the principles and amendments suggested for the governing framework.
The SEC has now formalized the launch of this sandbox, issuing detailed regulations that define the types of services eligible for participation, the qualifications required of participants, and the type of the experiments allowed within the sandbox environment.
Let’s innvovate!
Thailand’s new crypto regulatory sandbox is designed as a proactive response to the global and local interest in digital assets and their potential to revolutionize the financial sector.
The SEC already opened the sandbox for applications, inviting digital asset innovators to take part.
The initiative wants to boost innovative development in the capital market by providing a flexible regulatory environment that supports experimentation.
The SEC’s regulations for the sandbox include specific eligibility criteria for participants and outline the types of digital asset services that can be tested, including exchanges, brokerage, fund management, advisory services, and custodial wallet provision.
To minimize risks, participants are required to clearly define the scope of their services.
Progress in the industry
Thailand’s approach to cryptocurrency regulation has been pretty progressive compared to other regions.
The launch of this crypto regulatory sandbox is the latest in a series of measures designed to position Thailand as a leader in the digital asset space in the region.
Earlier this year, in February, Thailand’s Finance Ministry took another big step by exempting value-added tax on crypto asset trading, signaling its intention to transform the country into a digital asset hub.
