New Thai Regulations Enable Tokenized Securities and Digital Shares

Asia Blockchain Review
May 26, 2019

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


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Central Bank of France: Blockchain Can Answer Market Demands
The first deputy governor of the Central Bank of France says that blockchain can be implemented to c...

December 5, 2019

Red Cross Developing Blockchain-Based Currency for Aid Distribution
Three national units of the Red Cross plan to use blockchain-based currencies instead of cash and vo...

December 5, 2019

Australia’s Monash University Launches Blockchain Research Center
Australia’s Monash University has unveiled a research center that will focus on blockchain innovatio...

December 4, 2019

JPMorgan Tests Blockchain System for Tracking Cars
JPMorgan is developing a blockchain-based system to track the automobile inventory of car dealers ob...

December 4, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us