The recent news from Thailand’s cryptocurrency corridors is that the Stock Exchange of Thailand (SET) is aiming to open a new authorized digital exchange and is planning to apply for a digital asset operating license. According to the report published in Bangkok post, Stock Exchange of Thailand (SET) is eyeing a digital asset operating license in order to catch the growing investment trend of digital assets and become one of the leading players in the South East Asian region.
Stock Exchange of Thailand looks to gain the cryptocurrency market
According to news release, Pattera Dilokrungthirapop, chairwoman of the Association of Securities Companies and vice-chairwoman of the SET’s board of governors has mentioned that the exchange is very much optimistic of its plans. Securities companies that are members of the SET plan to apply to become brokers and dealers for digital asset trade on the new exchange.
While not many players have been successful in getting licenses from the Ministry of Finance of Thailand, SET is believed to have an upper hand compared to other players in terms of having “large capital and trust”.Having said that, the exchange would still need to set up a good operating system and work out details such as back-office systems and an e-wallet for token storage.
The South East Asian nation had passed a royal decree on digital assets in last year may and it has been effective since then. According to the decree and regulations, the roles of regulators are pretty much divided. The Securities and Exchange Commission of Thailand looks after the regulations of initial coin offerings and other digital asset businesses, including digital exchanges, brokers and dealers involved with digital asset transactions, while the Finance Ministry is the authority and is entitled to issue operating licenses for businesses seeking to operate digital asset businesses.
The interest for cryptocurrencies and digital assets is on the rise in Thailand and at present, there are many companies are in the queue to apply to become brokers and dealers of the digital asset class.
The news report also quotes Pattera saying,
“We [securities firms] are not in a hurry to enter the digital asset trade, as some companies are still managing their core businesses, while cryptocurrencies are just one of the [digital] asset classes where brokers can adapt their trading platforms to serve digital trading,”
She also added,
“Securities firms are currently waiting for the SET to apply for a license. For us, digital assets are expected to grow in the future as investors gain more understanding of this asset class.”
Cryptocurrency regulations may hinder the plans
While SET is optimistic, The Thai Ministry of Finance has rejected the last cryptocurrency exchange application it had been reviewing. The country’s Ministry of Finance, under the recommendation of the SEC board, decided to reject the application of Coin Asset Co. Ltd. to operate a cryptocurrency exchange.
Prior to this, the Thai Securities and Exchange Commission (SEC) had granted digital asset business licences to four applicants,” The recipient of this licenses includes three exchanges namely Bitcoin Exchange Co. Ltd. (Bx), Bitkub Online Co. Ltd. (Bitkub), and Satang Corporation (Satang Pro) while The approved broker-dealer is Coins Th Co. Ltd.
It’s amazing to see how a small country like Thailand is taking major strides in developing and embracing cryptocurrencies and it looks like the country may become a huge cryptocurrency market in Asia challenging the likes of Japan and South Korea.
Does Thailand have the potential to become a hub of cryptocurrency in Asia? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.