The Securities and Exchange Commission (SEC) in Thailand is introducing the Digital Asset Regulatory Sandbox to facilitate experiments and the development of innovations supporting the efficient provision of digital asset services in the real-life context.
Interested parties are welcome to “participate in the Sandbox to test their digital assets-related services, promoting innovative development in the capital market under a framework of flexible regulation.”
The Sandbox is officially launched as of August 9.
Earlier in March, the SEC Board passed “a resolution approving in principle the establishment of the Digital Asset Regulatory Sandbox.”
Later in May, the SEC conducted a public hearing “on this matter to gather comments and suggestions from the public and stakeholders.”
Most of the respondents agreed with “the principles and the proposed amendments to the governing regulations.”
The SEC has therefore issued the regulations “determining the characteristics of eligible services, the qualifications of participants and the scope of the Sandbox experiments,” with the key points as follows:
(1) The six eligible digital asset-related services are as follows:
(1) Digital Asset Exchange, (2) Digital Asset Broker, (3) Digital Asset Dealer, (4) Digital Asset Fund Manager, (5) Digital Asset Advisor, and (6) Digital Asset Custodial Wallet Provider.
The Sandbox participants must incorporate their innovations “into the development of digital asset services in the Thai capital market or must participate in a sandbox” of the money market regulatory agency;
(2) The SEC will consider the participants’ qualifications in various areas, “including capital adequacy, work systems, management structure, and conditions for relevant operations under the Sandbox to ensure that the participants are well prepared to provide services” within the Sandbox framework; and
(3) The participants must specify the specific scope of services for the Sandbox to reduce risks and widespread impacts that may occur “during the Sandbox period of no longer than one year as from the approval date. Nevertheless, upon expiration of the Sandbox period, the participants may request an extension for their service testing period.”
The Sandbox project is now open “for applications, starting from 9 August 2024.”
