March 22, 2022
By Sharan Kaur Phillora
The Securities and Exchange Commission (SEC) of Thailand is looking to regulate the issuance, listing, and trading of ready-to-use utility tokens on local digital asset exchanges, in order to increase investor protection.
Here’s what we know:
- The SEC has indicated that an entity or issuer seeking to list its utility token on digital exchanges for fundraising purposes will be required to submit a complete application, which must be approved by the SEC under the new regulatory guidelines.
- This gives SEC the authority to vet projects and tokens before they are listed on exchanges, in order to ensure that investors are not being misled.
- The tokens must be issued and offered through a licensed initial coin offering (ICO) portal and listed on a digital asset exchange with a transparent white paper.
- The new requirements will also cover trading and utility tokens, in both primary and secondary markets to increase the legal protection of traders and investors.
- The offering can be made in two ways. The first is a fast-track route that supports simple, uncomplicated fundraising, and the second is a normal track with complex fundraising, which must be carried out in accordance with the general fundraising process.
- The listed tokens will also be strictly prohibited from being used as a means of payment for goods and services as it would violate the Bank of Thailand’s financial stability policy.
- The proposed regulations are still in the draft stage and have not been finalized yet, but they are likely to be implemented soon.
About the author:
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.