Thailand has announced its strategy to launch a new regulatory sandbox to securely and efficiently test crypto services and tools.
Following this announcement, Thailand has moved towards a more crypto-friendly stance throughout this year by approving a Bitcoin ETF, introducing tax breaks for cryptocurrencies, and more. The country’s financial regulators have announced a new project that is set to test implementations of crypto solutions in a dedicated and secure regulatory sandbox.
The Securities and Exchange Commission (SEC) of Thailand introduced the Digital Asset Regulatory Sandbox on August 9, 2024, with the overall aim of facilitating experiments and development of new, efficient and improved digital asset products.
More information about the announcement
According to Cointelegraph, interested parties and institutions are invited to participate in the sandbox to test their digital asset solutions, while promoting better capital market development under flexible regulation. Furthermore, the official launch of the Digital Asset Regulatory Sandbox in Thailand comes a few months after the Thai SEC Board of Directors adopted a new resolution approving its establishment in March 2024.
The authority also later issued regulations on eligible solutions, including the qualifications of participants and the scope of sandbox trials. In addition, eligible digital asset tool providers included six services, such as digital asset exchanges, brokers, dealers, fund managers, advisors, and custody wallet providers. Participants were also required to integrate their innovations into the development of digital asset services in the capital market or participate in a sandbox of the money market regulatory agency.
The Thai SEC will also consider aspects such as capital adequacy, working systems, management structure and other conditions to ensure that sandbox participants are well prepared to provide and deliver safe and effective services under the framework. Companies will also be required to specify the scope of solutions to mitigate potential risks and impacts that may arise during the sandbox period, which will not exceed one year from the date of approval. The SEC added that participants can apply for an extension of their service testing period, only upon the expiration of the sandbox.
While allowing cryptocurrency transactions and payments, Thai regulators have also put in place strict regulations to protect the rights and safety of investors, while maintaining the country’s financial stability. In recent months, Thai financial authorities have taken a more crypto-friendly regulatory approach, approving several important initiatives to develop the landscape.
