Key Takeaways
- Eligible services for the sandbox include digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers.
- Service providers must meet criteria like capital adequacy, strong operational systems, and a robust management structure in order to qualify
On August 9, Thailand’s Securities and Exchange Commission (SEC) launched the Digital Asset Regulatory Sandbox, a new initiative aimed at advancing the development of digital asset services.
The sandbox is designed to allow participants to test their digital asset-related services under a flexible regulatory framework. The SEC stated that this initiative is meant to foster innovation in the capital market while maintaining regulatory oversight.
Eligible services for the sandbox include digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers. To qualify, service providers must meet criteria such as capital adequacy, strong operational systems, and a robust management structure. The SEC will evaluate these factors to ensure participants are adequately prepared.
Participants must also define the scope of their services to minimize risks during the testing phase, which can last up to one year from the approval date. The SEC has indicated that extensions for the testing period may be granted if necessary.
The latest development comes against the backdrop of Thailand’s recent move towards becoming a more crypto-friendly nation. Last month, the Thai SEC announced that it would allow licensed digital asset business operators to participate in payment trials by the central bank for the use of tokens for payment of goods and services.
Earlier this year, the SEC had endorsed One Asset Management (ONEAM) becoming the first firm to launch a spot Bitcoin exchange-traded fund (ETF) in Thailand. The financial regulator in the country had also recently agreed that asset management firms can manage private funds that invest in spot Bitcoin ETFs on US exchanges
