Thailand Launches Digital Asset Sandbox to Enable VASPs to Explore Innovative Solutions in a Controlled Environment

The Securities and Exchange Commission (SEC) first announced the sandbox in March, and two months later, it collected public feedback on the initiative.

Thailand’s Securities and Exchange Commission (SEC) has launched a digital asset sandbox to enable companies to explore innovative solutions in a controlled environment.

The sandbox was first announced by the SEC in March, and two months later, it collected public feedback on the initiative. According to its recent announcement, the feedback was positive, and the sandbox has now opened its doors.

The regulator called on any interested virtual asset service providers (VASPs) “to participate in the Sandbox to test their digital assets-related services, promoting innovative development in the capital market under a framework of flexible regulation.”

The sandbox is open to both digital asset and digital currency firms. In Thailand, the latter is limited to tokens used as mediums of exchange, while the former encompasses any token that gives its holder a right, such as ownership in a business.

The SEC will accept applications from six business categories: exchanges, brokers, fund managers, dealers, advisors and custodial wallet providers.

“The Sandbox participants must incorporate their innovations into the development of digital asset services in the Thai capital market or must participate in a sandbox of the money market regulatory agency,” the watchdog stated.

To qualify, these VASPs must prove that they have adequate capital and that they have implemented work systems, management structures and other conditions that ensure they are well-prepared to provide their stated services.

Each company will be hosted for one year. During this period, the company must specify the scope of its services to reduce risk and avoid widespread impact on the rest of the participants. However, the regulator is open to extending the duration if the company proves the need for extra time.

The SEC has been an active regulator in the Thai digital asset space. Last week, it revoked the license of Longroot, a company that operated a digital token offering (ICO) portal. In a statement, the agency said that Longroot had failed to comply with its set criteria.

“The SEC is authorised to supervise ICO portals to comply with relevant regulations and ICO portals must maintain the qualifications set by the SEC board at all times of doing business and providing services for the benefit of investors,” the regulator added.

Under a new government headed by Prime Minister Srettha Thavisin, Thailand is rapidly expanding its digital currency initiatives. In June, it approved the first digital currency exchange-traded fund (ETF), joining the United States, Hong Kong and others. It also continues to pioneer the development of a wholesale central bank digital currency (CBDC) as a founding member of mBridge.

Watch: Regulation leads to good uptick for Web3 operators

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.

The above is the detailed content of Thailand Launches Digital Asset Sandbox to Enable VASPs to Explore Innovative Solutions in a Controlled Environment. For more information, please follow other related articles on the PHP Chinese website!