Thailand’s Securities and Exchange Commission (SEC) has officially launched a Digital Asset Regulatory Sandbox, marking a significant step in the regulation of the country’s digital asset market.
The recent launch of the SEC’s innovative sandbox aims to nurture creativity by providing a safe zone for companies to trial their digital asset services. Unveiled on Aug. 9, this testing ground will cater to various services, such as crypto exchanges, brokers, traders, fund managers, consultants, and custodial wallet providers.
The SEC seeks to advance digital asset services in the Thai capital market through a regulated yet flexible framework. The sandbox concept gained initial approval from the SEC Board in March as a means to foster innovation testing in financial technologies.
Following this, a public hearing was held in May to gather feedback from stakeholders and the public. The feedback was overwhelmingly positive, leading to the finalization of the sandbox regulations.
Digital asset participant requirements and testing period
Within the sandbox program, participants must meet specific criteria to ensure their readiness to deliver services. These criteria encompass the need for adequate capital, resilient operational processes, and a strong managerial framework.
Participants in the sandbox are required to clearly outline the scope of their services to mitigate risks. Additionally, to forestall any negative impacts during the one-year testing phase. If needed, participants have the option to request an extension for further service testing post the initial period.
This sandbox initiative represents not only a regulatory measure but through offering a structured yet adaptable environment for testing, the SEC aims to draw more participants to the market. It potentially catalyzes additional growth and advancement in the crypto domain.
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