Thailand SEC Proposes New Rules for Crypto Exchanges to Issue Utility Tokens

Thailand’s Securities and Exchange Commission (SEC) has initiated a public consultation on proposed changes to digital asset listing regulations, which could permit licensed centralized exchanges (CEXs) to issue and list their own utility tokens. The consultation period, which runs until July 21, invites public feedback through the SEC’s website, the central legal system platform, or via email. This move is part of a broader government initiative aimed at bolstering Thailand’s crypto framework and promoting the responsible use of digital assets.

The proposed regulatory amendments are designed to expand the listing allowances for digital assets while imposing stricter transparency requirements on exchanges. One of the key proposals under review is the permission for crypto exchanges, operating under SEC licenses, to list utility tokens issued by themselves or affiliated entities. These tokens must serve a functional purpose within blockchain-based ecosystems, such as enabling transaction fees or platform governance, rather than being purely speculative investments.

In addition to relaxing restrictions on token listings, the SEC is proposing that exchanges disclose the identities of individuals connected to each listed digital asset. This measure is intended to enhance transparency and prevent conflicts of interest, particularly in cases where tokens are issued by the trading platforms themselves or their partners. The proposed rules would also require all existing listed tokens to disclose such information within 90 days of the rules taking effect. Furthermore, exchanges would be mandated to implement system alerts that allow the SEC to monitor insider trading in real time.

The Thai government is actively working to establish the country as a global digital asset hub. Recent months have seen the introduction of several tax incentives and regulatory updates aimed at attracting crypto investors, supporting innovation, and clarifying market oversight. On June 16, the government announced a five-year exemption from capital gains tax on profits earned from cryptocurrency trading through licensed exchanges. This policy, effective from January 1, 2024, will last until December 31, 2029.

Deputy Finance Minister Julapun Amornvivat emphasized the government’s commitment to the sector, stating, “Full speed ahead! The Thai government is accelerating efforts to position Thailand as a global digital asset hub.” In addition to tax relief measures, Thailand’s Revenue Department is working to implement the Organisation for Economic Co-operation and Development (OECD)’s Crypto-Asset Reporting Framework. These reforms follow recent enforcement actions targeting unauthorized digital asset service providers. On June 28, the SEC, under the authority of the Ministry of Digital Economy and Society, will begin blocking access to five international crypto exchanges—Bybit, 1000X, CoinEx, OKX, and XT.COM—accused of operating without the appropriate licenses and offering trading services to local users in violation of the Digital Assets Business Emergency Decree.

KuCoin, a licensed platform, recently launched “KuCoin Thailand,” a fully licensed digital asset trading platform operating under the oversight of the SEC. Meanwhile, the Thai SEC is considering the approval of locally issued Bitcoin exchange-traded funds (ETFs) for listing on Thai exchanges. This consideration follows increased global interest in crypto-backed ETFs and Thailand’s desire to be competitive in international financial markets.