Thai SEC begins consideration to allow CEXs to their own tokens

Thailand’s Securities and Exchange Commission (SEC) has launched a public consultation on a proposed rule change on digital asset listing, which could allow licensed centralized exchanges (CEXs) to issue and list their own utility tokens.

The consultation process, open until July 21, will gather feedback from the public through the SEC’s website, the central legal system platform, or via email.

The proposed regulatory changes are part of a government initiative to strengthen Thailand’s crypto framework and promote responsible use of the digital asset ecosystem.

Proposed rule changes listing standards and transparency

According to a statement released following a June SEC board meeting, the regulatory body is considering amendments that would expand listing allowances for digital assets while imposing tighter transparency requirements on exchanges.

One of the proposals under review would allow crypto exchanges operating under SEC licenses to list utility tokens issued by themselves or affiliated entities. These tokens must serve a functional purpose within blockchain-based ecosystems, like enabling transaction fees or platform governance, rather than serving purely as speculative investments.

Alongside the relaxed restrictions, the SEC is requesting exchanges to reveal the identities of individuals connected to each listed digital asset. Per the security regulator, this will uphold transparency and prevent conflicts of interest, particularly where tokens are issued by the trading platforms themselves or their partners.

The proposed rules would also mandate that all existing listed tokens disclose such information within 90 days of the rules taking effect. Additionally, exchanges would be required to implement system alerts that allow the SEC to monitor insider trading in real time.

Thailand speeds up efforts to become a digital asset hub

The Thai government is seemingly making an effort to position the Southeast Asian country as a global digital asset hub. In recent months, the Thai government has introduced several tax incentives and regulatory updates intended to attract crypto investors, support innovation, and clarify market oversight.

On June 16, the government announced a five-year exemption from capital gains tax on profits earned from cryptocurrency trading through licensed exchanges. The policy took effect on January 1 and will last until December 31, 2029.

Deputy Finance Minister Julapun Amornvivat reiterated the government’s commitment to the sector, stating, “Full speed ahead! The Thai government is accelerating efforts to position Thailand as a global digital asset hub.”

In addition to tax relief measures, Thailand’s Revenue Department is currently working to implement the Organisation for Economic Co-operation and Development (OECD)’s Crypto-Asset Reporting Framework. 

These reforms also come in the wake of Thailand’s recent enforcement actions targeting unauthorized digital asset service providers. On June 28, the SEC, under the authority of the Ministry of Digital Economy and Society, will begin blocking access to five international crypto exchanges, Bybit, 1000X, CoinEx, OKX, and XT.COM.

All five platforms have been accused of operating in Thailand without the appropriate licenses and offering trading services to local users in violation of the Digital Assets Business Emergency Decree. 

As reported by Cryptopolitan, crypto exchange KuCoin is among the licensed platforms to operate within the jurisdiction. It recently launched “KuCoin Thailand,” a fully licensed digital asset trading platform operating under the oversight of the SEC

Meanwhile, the Thai SEC is hinting at the approval of locally issued Bitcoin exchange-traded funds (ETFs) for listing on Thai exchanges. This consideration follows increased global interest in crypto-backed ETFs, championed by the US, and its desire to be competitive in international financial markets.

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