[NEWS] Thai SEC allows individual investors to participate in RWA token ICO

The Thai Securities and Exchange Commission (SEC) has announced new rules for digital asset-related businesses, including crypto assets (virtual currencies), and trading of RWA (Real World Assets) tokens linked to real assets.

The SEC will lift investor restrictions on RWA tokens, including tokens backed by two assets: real estate and infrastructure.

Thai retail investors can now participate in ICOs for real estate-backed tokens and tokens related to real estate income. Previously, there was a limit of 300,000 baht (approximately 1.25 million yen) that could be traded. In addition, restrictions on participating in infrastructure-related ICOs have also been lifted.

The Thai SEC announced rules for digital asset service providers in July last year. With the aim of protecting investors, it introduced the obligation to disclose risk warnings for cryptocurrency transactions and a prohibition on lending and staking services by digital asset service providers.

The purpose of the measures announced this time is to balance investor protection and fundraising for "national development."

The Thai SEC also announced rules for digital asset companies that wish to operate in additional business areas. The criteria used by the Thai SEC to evaluate new businesses include whether new revenues meet the following criteria:

• Benefit the core digital asset business.
• Do not cause a conflict of interest with the digital asset business.
• Do not pose a risk to customer assets, or have a mechanism to properly control risk.

The Thai SEC has introduced new rules for digital asset custody businesses that are part of a corporate group. The purpose is to prevent conflicts of interest when a custodian has common shareholders in the digital asset business.

Digital asset companies cannot provide services through other companies whose owners have been sanctioned or accused of digital asset violations, such as operating an unregistered business.

New Thai government proactive on digital technology

The new Thai government, which took office last September, campaigned on a promise to distribute 500 billion baht (about 2 trillion yen) worth of digital currency to the public.

This has not yet been realized, and according to the Thai State Council, distributing digital currency would require the issuance of government bonds, which could violate the Financial Law.

The Thai government is still moving forward with this project, but it is unclear whether it will be completed by the promised date of May.

Reference: Announcement発表
Image: Shutterstock

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