Thai SEC Proposes New Rules for Utility Tokens to Boost Transparency

Thai SEC has initiated a public consultation on new rules for utility tokens, which could significantly impact cryptocurrency exchanges across Thailand. The consultation, open until July 2025, aims to enhance transparency and innovation in the digital asset landscape. The proposed changes include permitting regulated crypto exchanges to issue their own utility tokens, provided these tokens serve real-world purposes and meet specific disclosure requirements. Additionally, existing token listings must disclose individual identities within 90 days of the announcement's effective date, strengthening investor protection and market transparency.

This initiative is part of Thailand's broader strategy to position itself as a global digital asset hub. Deputy Finance Minister Julapun Amornvivat has endorsed the move, emphasizing the government's commitment to accelerating efforts in this direction. The proposed rules are expected to affect domestic markets and investor practices, seeking to bolster the Thai crypto sector. The consultation aims for comprehensive feedback to ensure transparency and safeguard investors, reflecting a growing trend among regulators worldwide to adapt to the evolving landscape of digital assets.

The new rules would require exchanges to disclose the names of token issuers and other relevant information, enhancing market transparency. This measure is intended to strengthen investor protection by providing greater transparency about the entities involved in token issuance. The consultation period allows stakeholders to provide feedback on the proposed changes, ensuring that the final regulations are comprehensive and effective. The SEC's initiative reflects a commitment to balancing innovation with the need for robust regulatory frameworks.

The proposed rules are part of a broader effort to integrate utility tokens more seamlessly into the financial ecosystem. By allowing exchanges to issue their own utility tokens, the SEC aims to foster innovation and competition within the digital asset market. However, the stringent disclosure requirements underscore the regulator's commitment to protecting investors and maintaining market integrity. The consultation period provides an opportunity for industry participants, investors, and other stakeholders to engage with the regulatory process, shaping the final rules which are expected to have a significant impact on the digital asset market in Thailand.