Thailand's TSEC Lifts Restrictions on Digital Assets; Encourages Widespread Participation
Summary:
Thailand's Securities and Exchange Commission (TSEC) has eliminated investment restrictions on digital tokens backed by real estate or infrastructure, allowing retail investors to participate more freely in the REIT market. This move aligns with the growth of the cryptocurrency market in Thailand, evident from the acquisition of Satang by KBank. In addition, local custodial wallets can now be developed. The new policies align with Srettha Thavisin's appointment as Prime Minister, known for his active involvement in digital assets. The government also aims to distribute baht via digital wallets to citizens to stimulate the economy and promote digital literacy.
Restrictions preventing retail investors from purchasing real estate or infrastructure-backed digital tokens have been eliminated by Thailand's Securities and Exchange Commission (TSEC). This is a significant shift from the prior rules, which capped investments in these tokens at 300,000 baht ($8,500). As of January 16, 2024, according to the updated guidelines displayed in the Royal Gazette, these retail investors are now permitted to invest considerable amounts in the REIT market. The change in investment boundaries correlates with the cryptocurrency market's burgeoning growth in Thailand. For instance, KBank, Thailand's premier bank, acquired crypto exchange business Satang in September 2023, an indicator of the banking system's growing embrace of digital assets. Another significant change is the provision to form local custodial wallets, secure digital repositories for holding digital assets. Only public companies with a background in digital asset management can operate these wallets within Thailand. TSEC will also be overseeing permissions for Digital Asset Service Providers (DASPs) to venture into new areas. With the inauguration of Srettha Thavisin, a real estate magnate, as Prime Minister in August 2023, it's evident how the lifting of restrictions on digital tokens complements his appointment. Thavisin, who is the ex-CEO of Sansiri, one of Thailand's leading real estate companies, is a keen digital asset investor and even has his SiriHub Token. Simultaneously, the Thai government has expressed intentions to give each citizen over the age of 16, 10,000 baht ($274) via digital wallets. Despite being delayed twice post-Thavisin's election, the initiative is designed to invigorate the economy and enhance digital education.
Published At
1/18/2024 2:19:37 PM
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