Thailand SEC Introduces New Crypto Sandbox Regulations

The Thailand Securities and Exchange Commission (SEC) has introduced a new regulatory Sandbox designed to support and advance cryptocurrency innovations. This initiative allows for the testing of new crypto services under regulatory oversight.

Regulations and Eligible Services

The SEC approved the Sandbox framework in March, following a public hearing for feedback. The Sandbox will accept applications from six categories of crypto services:

• Crypto exchanges

• Crypto brokers

• Crypto dealers

• Crypto fund managers

• Crypto advisors

• Crypto asset custodial wallet providers

To participate, services must meet specific criteria regarding their operational systems, management structures, and financial stability. They are also required to outline their service scope to minimise potential risks during the Sandbox's one-year trial period.

Broader Crypto Regulatory Framework

This move is part of a broader update to Thailand's crypto regulatory framework. Under the Digital Asset Businesses Decree, the SEC now regulates various aspects of cryptocurrency activities, including initial coin offerings (ICOs), trading, and sales.

Changes to Investment Limits

The SEC has also removed the previous $8,500 investment cap for retail investors in assets related to real estate and infrastructure. This change aims to make the market more accessible to individual investors.

In addition to these updates, the SEC has endorsed Thailand’s first Bitcoin ETF. This fund plans to invest in 11 global funds, signifying the country's increasing openness to cryptocurrency investment.