Thailand SEC to Introduce Trading System for Tokenized Securities Using DLT
The Securities and Alternate Fee (SEC) of Thailand is ready to introduce a brand new buying and selling system for digital tokens, leveraging distributed ledger expertise (DLT) to reinforce market effectivity and entice securities companies into the digital asset house, in line with local reports revealed on February 3.
Notably, Jomkwan Kongsakul, deputy secretary-general of the Thai SEC, said that token investments have been gaining traction, prompting the regulator to discover new strategies to facilitate digital asset buying and selling.
“The SEC is leveraging expertise to reinforce effectivity within the capital market by selling an digital securities ecosystem,” Kongsakul mentioned. She added that new laws will probably be carried out to help the issuance of digital securities and on-line debenture purchases.
Key Developments in Thailand SEC’s Initiative:
The SEC has authorized 4 digital token initiatives and is reviewing two extra, specializing in inexperienced tokens and investment-based initiatives. Additionally, 5 extra companies have engaged in preliminary discussions concerning modern fundraising options, reminiscent of delicate energy and inexperienced tokens.
Furthermore, securities firms will quickly be allowed to commerce digital tokens, leveraging their present investor bases to extend market participation.
Presently, buying bonds within the main market requires 7-14 days earlier than they are often traded within the secondary market, resulting in liquidity and accessibility challenges. The SEC goals to resolve these inefficiencies by implementing a completely digitalized bond buying and selling system masking settlement, buying and selling, investor registration, and cost processing.
The system may also enable for interoperability amongst completely different DLT infrastructures, making certain a standardized framework for information connectivity.
“Sooner or later, there could also be a number of chains for commerce. Buying and selling via DLT on all techniques is linked by a shared ledger, which is predicted to be accomplished quickly,” Kongsakul mentioned.
Twin Securities Mannequin and Market Impression
The SEC’s digitalization technique consists of two forms of securities issuance:
- Digital-native securities: Merchandise initially launched and traded solely inside a digital ecosystem.
- Tokenized conventional securities: Standard securities which are digitized and built-in into the DLT framework, enabling improved buying and selling effectivity.
By using blockchain-based expertise, the brand new system is predicted to introduce fractional buying and selling, rising accessibility for retail traders and enhancing liquidity. Actual-time transactions will decrease settlement points, making the buying and selling course of extra seamless.
Along with digital securities, the Thai SEC can also be creating an Open API information platform, which can present traders with real-time monetary information from listed firms. This initiative goals to enhance funding decision-making by providing clear and accessible info.
Broader Crypto Regulatory Panorama
Thailand’s regulatory stance on cryptocurrencies stays combined. Whereas tokenized securities are being built-in into monetary markets, the central financial institution nonetheless prohibits using cryptocurrencies for funds.
Nevertheless, a Bitcoin cost sandbox is ready to launch in Phuket later this yr, offering overseas vacationers with an alternate cost methodology whereas permitting regulators to review potential dangers.
