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SEC to promote a robust ecosystem of investment tokens
The SEC is seeking public comments on proposed amendments to ministerial regulations aimed at enhancing investment token market mechanisms, with the goal of promoting it as a fundraising alternative. Traditional financial service providers will be required to offer related services through a separate legal entity.
The Securities and Exchange Commission (SEC) is seeking public comments on proposed amendments to the ministerial regulations and related rules to enhance the mechanisms of the investment token market, making it more robust and efficient, thereby promoting investment tokens as an alternative fundraising option for businesses. Additionally, the proposal requires that traditional financial service providers offer their services related to cryptocurrencies* and utility tokens** through a separate legal entity to ensure clarity and increase investor protection.
The SEC Board has passed a resolution approving in principle the proposal to amend the Ministerial Regulations on Licensing of Digital Asset Businesses B.E. 2561 (2018) and relevant regulations to promote fundraising and investment in investment tokens and to support interested securities business operators in providing services related to the said products. This in turn would increase access channels to investors in both primary and secondary markets. The SEC is therefore conducting this public hearing on the proposed principle and draft amendments to the ministerial regulations and relevant regulations. The major changes that will be introduced by the SEC’s proposal include:
(1) To revise the qualifications and licensing process for the securities companies that wish to apply for investment token broker, dealer and advisor license;
(2) To exempt digital asset fund manager license for securities companies and asset management companies to allow mutual funds and private funds to invest in investment tokens and other types of digital assets, with regulatory oversight under the securities regulations (a public consultation will be conducted on draft regulations for digital asset investments of mutual funds and private funds in due course);
(3) To prohibit securities companies and derivatives business operators from obtaining digital asset business licenses to offer cryptocurrency and utility token services. Additionally, a transitional provision will be established, requiring securities companies currently providing cryptocurrency and utility token services to establish a separate entity for such services. The newly established company must apply for a license within one year from the effective date of the amended ministerial regulations.
The consultation paper is available at: https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1016 and the central legal hub at: www.law.go.th. Stakeholders and Interested parties are welcome to submit comments and suggestions via the SEC website or email: [email protected] or [email protected]. The public hearing ends on 14 October 2024.
Source : SEC public hearing on draft regulations to promote a robust ecosystem of investment tokens
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