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Thailand is on the verge of legalizing the issuance of token-denominated securities using blockchain technology through a recent amendment to the stock exchange law.
Thailand for Greenlight STOs
The National Legislative Assembly of Thailand has would have approved an amendment to the Securities and Stock Exchange Act on February 8, according to the Bangkok Post.
The amended law is expected to come into effect this year, according to SEC Deputy Secretary-General Tipsuda Thavaramara.
Pariya Techamuanvivit, SEC's director of SEC's communications department, said that once this happens, it would be legal for companies to launch security chip offers using blockchain technology.
It also clarified that the Commission would be able to clarify in legal terms whether certain securities may or may not be issued in the form of digital tokens.
In addition, the rights and obligations badociated with the STO's digital token will determine whether it will be regulated under the Securities and Exchange Act and the Royal Decree on Digital Assets.
The order states that if a financial instrument, that is, a digital token, meets the definition of a security, it will be regulated under the law.
It should be noted that last year Thailand has established rules which clearly define the terms "cryptocurrency" and "digital token", thus ending the coin-to-security debate. According to the rules, "cryptocurrencies" are used as a means of exchanging goods.
"Digital tokens", on the other hand, are defined as rights to participate in an investment.
Additional changes
In addition, the amended law will also allow companies to obtain licenses to operate as custodians of securities and tokens.
It was something previously only allowed for the Thailand Securities Depository Co Ltd, a subsidiary of the Thailand Stock Exchange (SET).
Bitcoinist reported earlier this year, the Thai Stock Exchange (SET) is considering applying for a digital badet license from the Thai Ministry of Finance. If approved, SET may allow customers to exchange bitcoins and other digital resources by the end of 2019.
What do you think of the new regulation adopted in Thailand? Do not hesitate to let us know in the comments below!
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