Thailand’s National Legislative Assembly has officially allowed the issuance of tokenized securities on blockchain, major newspaper The Bangkok Post reports on Friday, Feb. 22.
The government will amend the Securities and Exchange Act, according to the article. As soon as the changes come into effect later in 2019, tokenized securities such as stocks and bonds can be officially issued on blockchain.
The Thai Securities and Exchange Commission (Thai SEC) will issue additional rules so that crypto platforms can seek a securities depository license. According to Thai SEC deputy secretary Tipsuda Thavaramara, the regulator will also allow businesses that operate as depositories of securities and digital tokens to apply for such licenses.
Previously, the aforementioned act defined Thailand Securities Depository Co Ltd, a subsidiary of the Stock Exchange of Thailand (SET), as the only company permitted to operate as a securities depository for the SET’s securities trading operations.
The Thai SEC will also decide whether a security token offering is regulated under the current securities act or the royal decree on digital assets. The decision will depend on the rights and obligations associated with a particular token, the publication notes.
Earlier this year, the Thai Ministry of Finance issued digital asset business licenses to four crypto-related firms under the recommendation of the Thai SEC Board. Two other applicants failed to comply with Thai SEC rules and were rejected.
The National Electronics and Computer Technology Center of Thailand is exploring the use of blockchain in e-voting. The solution could be deployed in the short term in a closed environment; for example, Thai nationals living abroad could go to an embassy or consulate to vote and verify their identities on blockchain.