In a move to refine oversight and align with the evolving landscape of digital assets, Thailand's Securities and Exchange Commission (SEC) has announced amendments to the criteria governing digital token investments, digital asset custody services, and associated standards for businesses.

The revisions, effective as of January 16, aim to strike a balance between investor protection and the encouragement of digital technology adoption for fundraising.

The decision to amend these criteria was made during the SEC's meeting on March 2, 2023, where principles for the enhancement of investment and service standards in the digital asset space were approved.

Key Amendments

With the new rules, the SEC has lifted constraints on individual investor participation in real estate-backed ICOs and infra-backed ICOs.

This move aims to match investment limits with the inherent risks of these products while fostering the use of digital technology in fundraising.

Criteria for businesses providing digital asset custody services have also been reviewed.

These entities can now facilitate joint ownership among major shareholders within registered companies or subsidiaries, provided they demonstrate expertise in managing financial assets.

Compliance with the SEC-defined independence criteria is mandatory.

Businesses intending to diversify their activities must now also seek prior approval from the SEC.

This proactive approach enhances the efficiency of tracking and monitoring such operations.

Lastly, the SEC introduced enhanced standards for service providers to ensure compliance with legal requirements.

This move is designed to raise the overall quality and trustworthiness of the digital asset market in Thailand.

New Rules for Wallet Providers

The SEC has issued exceptions for Digital Asset Custodial Wallet Providers (DA custodial wallet providers).

They are exempted from being considered legal service providers when providing custodial services for digital assets issued by themselves to customers.

This exemption aims to avoid additional burdens and costs for such service providers.

Moreover, the SEC, on two different occasions in November 10, 2023, and December 7, 2023, approved the review of advertising guidelines for digital asset businesses.

Changes include canceling individual piece reporting requirements for advertising details, requiring companies to submit advertising proposals for high-level management consideration, and implementing post-advertising compliance monitoring and reporting.

These adjustments, together effective since January 16, 2024, aim to align with the principles of overseeing businesses in a way that meets regulatory standards while minimizing additional costs for businesses.