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SEC amends regulations related to digital assets as a means of payment
SEC amends regulations related to the use of digital assets as a means of payment and regulations supporting BOT Programmable Payment Sandbox (SEC News)
The SEC in Bangkok has issued notifications to amend regulations prohibiting digital assets as payment, allowing participation in the BOT’s Programmable Payment Sandbox for digital asset business operators effective September 6, 2024.
The Securities and Exchange Commission (SEC) has announced amendments to the regulations that prohibit the use of digital assets as a means of payment for goods and services (MOP). These amendments extend the prohibition to all existing types of digital asset business operators and permit those under SEC regulation to partake in the Bank of Thailand’s (BOT) Programmable Payment Sandbox, which is designed to foster digital financial innovation. The amendments are set to be enforced from 6 September 2024.
- The SEC has amended regulations to allow digital asset business operators to participate in the Programmable Payment Sandbox created by the Bank of Thailand, promoting the development of digital financial innovations.
- The amendments expand the scope of service provision to cover the new type of digital asset business operator, Digital Asset Custodial Wallet Provider, and revise the restrictive rules for participating in the Sandbox.
- The amendments also update the Cryptocurrency List to allow ICO issuers, ICO portals, and digital asset business operators to accept specified cryptocurrencies in transactions or as compensations within the Programmable Payment Sandbox.
In July 2024, the SEC conducted a hearing to gather comments from the public and stakeholders on the draft amendments to ensure that the services provided by digital asset business operators without the characteristics of MOP cover all types of digital asset businesses and that digital asset business operators are able to participate in the BOT’s Programmable Payment Sandbox while promoting the development of digital financial innovations. Most respondents agreed with the draft amendments. The SEC has therefore issued notifications* specifying the amendments with the key points as follows:
The SEC has therefore issued notifications* specifying the amendments with the key points as follows:
(1) Revising the rules, conditions and procedures for the provision of services without exhibiting the characteristics of MOP by expanding the scope of service provision to also cover the new type of digital asset business operator: Digital Asset Custodial Wallet Provider**;
(2) Revising the restrictive rules allowing digital asset business operators granted approval by the BOT to participate in the Programmable Payment Sandbox to provide services or proceed in the manner of MOP under the Sandbox; and
(3) Revising the Cryptocurrency List specified by the SEC to allow ICO issuers, ICO portals and digital asset business operators to accept the cryptocurrencies on the list in transactions or as compensations to accommodate activities related to digital assets under the Programmable Payment Sandbox.
The notifications of the aforesaid amendments will take effect from 6 September 2024 onwards.
* The two relevant notifications are as follows:
(1) Notification of the Securities and Exchange Commission No. Kor Thor. 25/2567 Re: Rules, Conditions and Procedures for Providing Services by Digital Asset Business Operators without the Characteristics of Supporting the Use of Digital Assets as a Means of Payment for Products and Services (No. 2), dated 29 August 2024: https://publish.sec.or.th/nrs/10351s.pdf
(2) Notification of the Office of the Securities and Exchange Commission No. Sor Jor. 22/2567 Re: the Cryptocurrency List Specified by the Office of the Securities and Exchange Commission (No. 3), dated 28 August 2024: https://publish.sec.or.th/nrs/10353s.pdf, and the Attachment to the Notification of the Office of the Securities and Exchange Commission No. Sor Jor. 44/2561 Re: the Cryptocurrency List Which ICO Issuers or Digital Asset Business Operators Are allowed to Accept as Compensations or in Transactions, as amended by the Notification of the Office of the Securities and Exchange Commission No. Sor Jor. 22/2567 Re: the Cryptocurrency List specified by the Office of the Securities and Exchange Commission (No. 3): https://publish.sec.or.th/nrs/10354s.pdf
** Currently, the six types of digital asset business operators under the SEC’s supervision are:
1. Digital Asset Exchange
2. Digital Asset Broker
3. Digital Asset Dealer
4. Digital Asset Fund Manager
5. Digital Asset Advisory Service Provider
6. Digital Asset Custodial Wallet Provider
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