Thailand’s National Legislative Assembly has reportedly approved an amendment to the Securities and Exchange Act that will now legalize issuance of tokenized securities such as stocks and bonds in the country.
According to a report from Bangkok Post on Friday, the nation’s Securities and Exchange Commission (SEC) has subsequently, amended the act. Effective from later this year, the SEC will issue detailed guidelines and rules for tokenized and electronic securities in the coming months.
Tipsuda Thavaramara, the SEC’s deputy secretary-general stated in the report that these legislative efforts will pave way for tokenization platforms in the future, and will help develop the digital asset ecosystem. In addition, the amendment will enable businesses to be licensed to operate as depositories of securities and digital tokens.
Until now, the business was restricted to Thailand Securities Depository Co Ltd, a subsidiary of the Stock Exchange of Thailand (SET), the Bangkok Post said. All Crypto businesses in Thailand are regulated under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018).
Reportedly, the decision of whether a security token offering will be regulated under the royal decree or the securities act stands with the SEC. Pariya Techamuanvivit, director of the corporate communication department at the SEC, stated in the article:
“It will depend on features of rights and obligations associated with that token.”
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