Bangkok: SEC considers new regulatory guidelines for trading of utility tokens

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.

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