The National Legislative Assembly of Thailand has approved an amendment to the Securities and Exchange Act that may allow for stocks and bonds to be tokenized and issued on a blockchain platform, according to a February 22 report from The Bangkok Post.
Prior to this amendment, the Securities and Exchange Act only allowed the Thailand Securities Depository Co Ltd. – a subsidiary of Thailand's stock exchange – to trade and hold "scripless securities." (This refers to securities without a physical certificate) Now, any businesses that wish to operate a digital token or securities depository will be able to "apply for depository licenses."
The amended act will also allow companies undergoing fundraising efforts such as initial coin offerings (ICOs) and security token offerings (STOs) to issue tokenized securities to their investors over a blockchain platform. However, an STO may be regulated under the digital asset royal decree based on whether the token falls under the decree's definition of a security or digital token.
Per the Post, the Thailand SEC has already amended the act and will provide further guidance and regulations in the coming months. "The implementation of the tokenisation platform is expected to become effective this year," said Thailand SEC deputy secretary-general Tipsuda Thavaramara.
This move is the latest in Thailand's push to incorporate cryptocurrency and blockchain technology into its financial industry. In June 2018, the Bank of Thailand revealed it had been researching the benefits blockchain technology could bring to the country's banking industry. In August 2018, the central bank announced plans to develop and experiment with a prototype of a central bank digital currency. And just last month, Thailand's Ministry of Finance granted digital asset business licenses to four digital currency exchanges.
Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.
Like what you read? Follow us on Twitter @ETHNews_ to receive the latest NLA, Securities and Exchange Act or other Ethereum law and legislation news.
Representational image of Bitcoin. (File: Bloomberg) By Nathaniel Popper Hamas, the militant Palestinian group, has been designated a terrorist organization… Read More
Just yesterday we told you how there was a new Faketoshi in town, staking a questionable claim to the Bitcoin… Read More
Share Tweet Send Share Bitcoin price predictions have been coming thick and fast in recent months as the world’s top… Read More
For a man that wants nothing to do with Bitcoin , economist and Euro Pacific Capital CEO Peter Schiff never… Read More
Casa, a crypto firm that provides a private key management service and Bitcoin node machine, has unveiled a node monitor… Read More
Ethereum Classic vs Ethereum: Classic is making a comeback today An important price level has been broken 0.037673 looks to… Read More