Thailand's SEC Unveils Blockchain Trading Platform, Boosting Capital Market Modernization

The Securities and Exchange Commission (SEC) of Thailand is set to launch a blockchain-based digital token trading platform, marking a significant step in the modernization of the country's capital market. The initiative comes amidst growing investor interest in token investments, as reported by the Bangkok Post.

Jomkwan Kongsakul, deputy secretary-general of the Thailand SEC, emphasized the regulatory body's commitment to enhancing efficiency in the capital market through the promotion of an electronic securities ecosystem. The forthcoming DLT platform will cover both primary and secondary bond markets, handling critical processes such as settlement, trading, payment systems, investor registration, and multiple blockchain support.

The platform will support two categories of securities: tokenized traditional securities and digital-native electronic securities. Four digital token projects have already received approval to operate on the SEC's platform, with two additional projects focusing on green tokens and investment-based initiatives currently under review.

While Thailand maintains strict regulations on cryptocurrency usage for payments, regulators are exploring new possibilities. A Bitcoin payment sandbox is set to launch later this year in Phuket, providing tourists with an alternative payment method while helping regulators assess associated risks in a controlled environment.

Former Thailand Prime Minister Thaksin Shinawatra recently supported stablecoins and asset-backed digital tokens, asserting there was "no risk" in permitting their trade. Additionally, reports from January suggest that the Thai government is considering launching a stablecoin backed by government bonds, although no official confirmation has been issued.