According to the recent reports, Thailand is all set to legalize security token offerings issuance utilizing blockchain technology with an ongoing change to the Securities and Exchange Act.

The amended act will go live later this year according to Tipsuda Thavaramara, Deputy Secretary-General at the SEC. The Director of the Corporate Communication Department at the SEC, Pariya Techamuanvivit, stated that this is one the revolutionary step for Thailand’s fintech economy and once this happens, it will be completely legal for businesses to launch security token offerings using blockchain technology. She also outlined that the Commission in coming months will also provide legal clarity on whether or not certain securities can be issued as digital tokens.

Also Read: Thailand’s Stock Exchange Will Support Tokenized Securities on its Platform

The amended act will also allow businesses in Thailand to obtain licenses to operate as depositories of securities and digital tokens. This was previously allowed only for the Thailand Securities Depository Co Ltd, which is a subsidiary of the Stock Exchange of Thailand (SET).

The rights and the obligations which are tied with the digital token, subject of the STO, will determine whether or not the token will be regulated under the Securities and Exchange Act and the Royal Decree on Digital Assets. The decree states that if a financial instrument (digital token in this case), fits the definition of a security, then it will fall under the act.

Last year, Thailand has already led down a set of established rules which put clear definitions for the terms cryptocurrencies and digital token, hence ending the typical currency vs. security token debate. As per the rules, cryptocurrencies are used as medium for exchanging goods. Digital tokens on the other hand, are defined as rights to take part in an investment.

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