In an effort to further encourage crypto trading, the Government of Thailand has approved the trading of tokenized securities in the country. According to the nation’s popular newspaper, The Bangkok Post, the decision will allow the trading of tokenized security on the blockchain and also encourage the institutional investors to take a plunge into the crypto investment. Further giving the details about the development, the newspaper revealed that the National Legislative Assembly of the country would make necessary changes in the Securities and Exchange Act to adjust the new provision related to tokenized securities. The changes are expected to come into effect later in 2019 post which various tokenize securities such as bonds and stocks can be issued on the blockchain.
The various crypto platforms operating in the country have to apply for the license which will be issued by the Thai Securities and Exchange Commission. According to the Tipsuda Thavaramara, Deputy Secretary of the Thai Securities and Exchange Commission, the businesses which are operating as security depositors can also apply for the license. Until now, only the Thailand Securities Depository Co Ltd was allowed to act as a security depositor for the Stock Exchange of Thailand (SET). So that you know, the Thailand Securities Depository Co Ltd is a subsidiary of SET.
The Securities and Exchange Commission will also decide on the regulation under which the token offering will be considered. It could either come under the purview of current securities act or royal decree issued for the digital assets. By analyzing the obligations and rights of a particular token offering, the token offering will be categorized either in one or another segment.
The Finance Ministry of the country has issued licenses to four different crypto-related firms earlier this year for starting digital assets business. The licenses were granted on the recommendation of the Securities and Exchange Commission. Also, the Ministry has denied the license to two other parties as they couldn’t able to comply with the standards set by the Exchange Commission.
Thailand is also exploring the ways to use blockchain technology for the e-voting. The task has been entrusted with the National Electronics and Computer Technology Center of Thailand. With the help of e-voting, Thai nationals living abroad could go to consulate or embassy to cast their vote on the blockchain after verifying their identities.