Thailand SEC plans to launch tokenized securities trading system

The Securities and Exchange Commission of Thailand is planning to launch a distributed ledger technology-based trading platform for securities firms to trade digital tokens.

The deputy secretary-general of the Thai SEC said that token investments were gaining traction and the regulator will allow securities companies to trade digital tokens to capitalize on their large investor bases, the Bangkok Post reported on Feb. 3.

“The SEC is leveraging technology to enhance efficiency in the capital market by promoting an electronic securities ecosystem,” Jomkwan Kongsakul said, adding, “new regulations will be launched to facilitate the issuance of electronic securities and online purchases of debentures,” or medium-to-long-term debt instruments used by large companies to borrow money.

Four digital token projects have been approved for the SEC’s new DLT debt instrument trading system, with two more under review focusing on green tokens and investment-based projects, the report added. 

The planned system features full digitalization of bond trading for both primary and secondary markets, coverage of settlement, trading, investor registration, payment processes and multiple chain support with interoperability standards, though it did not specify which chains.

“In the future, there may be multiple chains for trade. Trading through DLT on all systems is connected by a shared ledger, which is expected to be completed soon,” she said.

Two types of securities will be issued, tokenized traditional securities and electronic securities, which are products that start trading as digital-native assets. 

Related: Thailand should study crypto to remain relevant — former Thailand PM

Thailand’s crypto landscape has been “maturing” into a more institutional market focus for both tokenized securities and crypto assets, Binance Thailand CEO Nirun Fuwattananukul said in October. 

Using crypto for payments remains outlawed by the Thai central bank but there are plans to launch a Bitcoin payment sandbox on the tourist island of Phuket later this year. 

The pilot program will offer foreign visitors an alternative crypto payment option while enabling regulators to assess associated risks in a sandbox environment. 

In January, former Thai Prime Minister Thaksin Shinawatra said there was “no risk” in allowing the trade of stablecoins and other digital tokens backed by tangible assets. 

The Thai government is also reportedly considering issuing a stablecoin backed by government bonds, according to a Jan. 30 Jinshi report, though no official announcement has been made. 

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