The Thai Securities and Exchange Commission (SEC) is gearing up to launch an innovative trading platform powered by distributed ledger technology (DLT), aimed at facilitating the trading of digital tokens among securities firms. This initiative comes in response to a surge in interest for token investments, as highlighted by the deputy secretary-general of the SEC. By allowing securities companies to delve into digital assets, the SEC hopes to tap into their broad reach among investors and enhance the overall efficiency of the capital markets.
Regulatory Developments
One of the SEC’s primary goals is to cultivate an electronic securities landscape. To this end, upcoming regulations are being designed to promote the issuance of electronic securities and ease the process of online transactions, particularly for debentures. So far, the SEC has approved four digital token projects that fit within this fresh framework for DLT-enabled debt instruments, with two additional initiatives currently under review. The latter are focused on green tokens and investments.
New Trading System Features
The upcoming trading system promises a comprehensive digital approach to bond trading, catering to both primary and secondary markets. It will feature crucial elements such as settlement procedures, investor registration, and payment systems, all while supporting multiple blockchain networks to ensure seamless interoperability. However, the SEC has yet to share specific details regarding the choice of blockchain technology.
Future Prospects
Within this burgeoning structure, two new types of securities are set to emerge: the tokenized traditional securities and truly digital electronic securities. This development marks a significant evolution in Thailand’s cryptocurrency landscape, aligning closely with the growing institutional interest in both tokenized securities and crypto assets. While the central bank continues to restrict the usage of cryptocurrencies for payment transactions, there are exciting plans in the pipeline. Later this year, Phuket is slated to pilot a Bitcoin payment scheme aimed at offering international tourists an alternative way to transact, all while enabling regulators to assess the associated risks.
Moreover, emerging discussions within the Thai government suggest a potential move towards creating a stablecoin backed by government bonds. However, details remain scant, and no official announcements have been made regarding this idea. Overall, these developments signal an exciting time for Thailand’s financial technology landscape, paving the way for a more integrated digital economy.
Source: Cointelegraph
