Thailand’s Security and Exchange Commission (SEC) has recently introduced regulations under the amended Securities and Exchange Act 2019, allowing for the issuance of digital shares and a tokenized securities depository platform.

As reported by Cointelegraph, SEC Deputy Secretary-General Tipsuda Thavaramara said amendments to the act have been in effect since April 17.  

The commission has urged all stakeholders to prepare for the amended act, which will enable the introduction of blockchain technology in trade and security tokenization.

The amendments also expand the coverage scope for scripless transactions to primary markets for all types of securities, as they had previously been limited to secondary markets. This would in turn open the system to tokenized securities.

Tipsuda said the change will have a major impact by providing a legal basis for supporting Thailand’s capital market and the tokenization platform, adding that it opens opportunities for more market players while supporting the notion of completely digital shares.

Scripless trading is essentially a system in which settlements are carried out through book-entries, rather than the movement of physical securities.

In February, Thailand’s National Legislative Assembly (NLA) officially permitted tokenized securities to be issued on blockchain platforms.

Previously, the Securities and Exchange Act defined Thailand Securities Depository Co. Ltd., a subsidiary of the Stock Exchange of Thailand (SET), as the only firm allowed to operate as a securities depository for the SET’s securities trading operations.

It was also reported in March that the Thai SEC approved the country’s first ICO portal, thereby allowing the screening of ICOs and confirmation of smart contract source codes. It also means other government agencies can review the portal in preparation for granting the necessary licensing.

Source: cointelegraph.com

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