- Thailand’s SEC is launching a blockchain-based Crypto platform for token trading, enhancing digital asset markets.
- SEC approves four digital token projects, with plans for two more, focusing on green and investment-based tokens.
- New platform will fully digitize bond trading, supporting multiple blockchain chains and improving settlement flexibility.
Thailand’s Securities and Exchange Commission (SEC) is expected to soon come up with a new platform for trading cryptocurrencies. This platform is to enable token exchange in securities businesses, which will be a further advancement of utilizing DLT in its financial markets.
According to a recent report, Jomkwan Kongsakul said that token investment is growing day by day adding that he is the deputy secretary general of the SEC. Thus, the SEC will allow securities firms to trade in the tokens because of this trend. This is to ensure that these firms utilise their huge investors to increase the market of digital assets.
Source: SEC
SEC’s DLT System for Securities
This is part of the commission’s plan to incubate and enhance the growth of capital markets in Thailand. New measures are set to be implemented to ensure issuance of the electronic securities and enhance ease of purchase of debentures online. Debentures are fixed-income capital with a long-term basis used to finance by the companies in need of the fund.
The new DLT debt instrument trading system of the SEC has already cleared four digital token projects and is currently considering two more for approval. These projects are aimed at green tokens and investment-based projects. The SEC’s vision is to develop a more stable and the diverse market space for digital assets, thus including both investing practices and novelties.
The trading of bonds in both the primary and secondary market will be carried out through a new platform that will make it fully digital. These services will also cover areas such as settlement and payment, investors’ registration and other services related to the trading cycle. The platforms will also be capable of working with multiple blockchain chains other than Ethereum but it has not shared the potential blockchains. Payment facilitation between different chains is expected to be improved by this approach for increased flexibility and integration.
Thailand’s Institutional Crypto Shift
There will be two kind of securities sold through this platform. The first, tokenized traditional securities, will rep the traditional securities in the blockchain system. The second, electronic securities, will begin entirely in the online space as securities. This way it will cover essentialists, existing investors, and those who operate directly with digital assets.
Future of cryptocurrency Thailand is proceeding at the tremendous speed. Indeed, as stated Binance Thailand CEO Nirun Fuwattananukul, the market is transitioning to a more institutionalized one. With money in tokens and cryptocurrency platforms developing as a segment of the financial market, institutional entities grow more and more influential.
Although the Bank of Thailand has prohibited the use of cryptocurrencies to make payments, there are other sectors it is exploring. There are plans for the use of a Bitcoin payment system that will be implemented in the second half of this year in Phuket. It will let tourists use Bitcoin for their purchases which will introduce the risks and opportunities of cryptocurrency to the tourism sector of Thailand.
