Thailand SEC Proposes Rules for Exchanges to List Own Tokens

The Thailand Securities and Exchange Commission (SEC) has launched a public consultation on proposed rules that would permit licensed crypto exchanges to list their own exchange-issued tokens. This initiative is part of Thailand’s broader strategy to enhance its status as a crypto-friendly hub. The consultation period is open until July 21, 2025, inviting the public to share their feedback on the proposed regulations.

The SEC’s proposed regulations focus on transparency and risk management. Key proposals include allowing exchanges to list self-issued or affiliated tokens, provided they clearly disclose their intended usage. Additionally, exchanges must identify individuals affiliated with token issuers and update these details in the SEC’s e-reporting system to monitor and reduce the risk of insider trading. Existing tokens already listed by exchanges must comply with the new disclosure rules within 90 days of the regulations coming into effect.

This move aligns with Thailand’s recent crypto-friendly policies, such as a five-year capital gains tax exemption on crypto trades and plans to allow tourists to pay in crypto. These steps aim to position the country as a regional hub for digital assets while ensuring investor safety and regulatory clarity. The feedback initiative is a significant step toward creating a more open and secure digital asset market in Thailand.

The proposed revisions center around allowing digital asset exchanges to list utility tokens issued by the exchanges themselves or their affiliated entities. This change is a significant departure from previous limitations and has sparked considerable discussion within the Thai crypto community. The current state generally restricts or complicates exchanges from easily listing tokens they or their related companies issue, likely to avoid conflicts of interest. The proposed change explicitly permits digital asset exchanges regulated in Thailand to list utility tokens that have been issued by the exchange itself or any entity considered an affiliate of the exchange.

If these revised crypto listing rules are implemented, the implications for Thai crypto exchanges and the broader market could be substantial. Exchanges could potentially launch their own platform tokens and list them directly, fostering ecosystem development. Listing exchange-issued tokens on their own platform could provide immediate liquidity for these tokens, making them more accessible to users. This could open up new revenue streams and engagement models for exchanges, potentially allowing them to compete more effectively globally. It might encourage the development and adoption of utility tokens within Thailand’s digital asset landscape.

However, the proposed rule change also raises important questions and potential concerns. An exchange listing its own token could prioritize it over others, potentially influencing trading volume and price in a way that benefits the exchange rather than market fairness. Concerns about wash trading or other manipulative practices designed to artificially inflate the trading volume or price of an exchange’s own token. Ensuring that investors understand the risks associated with trading tokens issued by the platform they are using, and that adequate safeguards are in place. The SEC would need robust mechanisms to monitor trading activities involving exchange-issued tokens to prevent abuse. Addressing these concerns through clear guidelines, stringent oversight, and transparency will be vital if the rule change proceeds.

The fact that the Thailand SEC crypto body is conducting a public consultation is a positive sign. It indicates a willingness to gather feedback from various stakeholders before making a final decision on the crypto listing rules. This process allows the SEC to understand the potential impacts from different perspectives, identify unforeseen issues or risks associated with the proposed changes, gather data and arguments that can help refine the final regulations, and foster transparency and build trust within the digital asset community. Stakeholders interested in the future of Thai crypto exchanges and the broader crypto regulation landscape should actively participate in this consultation process to ensure their voices are heard.

The public consultation period will have a defined timeframe during which submissions are accepted. Once the consultation concludes, the SEC will review the feedback received. Based on this input, they will decide whether to proceed with the proposed revisions to the crypto listing rules, modify them, or potentially withdraw the proposal. Any finalized changes would then be officially published and implemented. This development is a key indicator of how regulators globally are grappling with the nuances of digital assets, particularly the role of platforms that list and trade these assets. The outcome of this consultation in Thailand could set a precedent or provide insights for other jurisdictions considering similar rule adjustments.

Thailand’s SEC is taking a proactive step by reviewing its crypto listing rules. The proposal to allow Thai crypto exchanges to list their own utility tokens is a significant point of discussion. While it holds the potential to foster innovation and growth within the local digital asset market, it also necessitates careful consideration of potential conflicts of interest and investor protection measures. The ongoing public consultation is a critical phase, allowing for a balanced discussion on how best to shape the future of crypto regulation to support a healthy, secure, and innovative ecosystem.