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Thailand’s Securities and Exchange Commission (SEC) has today announced clarifications over its stand on listing and regulating utility tokens. In an online conference, SEC Assistant Secretary-General Jomkwan Kongsakul stated utility tokens are used for exchanging goods and services, therefore, the SEC wouldn’t regulate tokens used for consumption.
She believes, in order to trade utility tokens, traders should have enough data regarding buying and selling prices. However, there is a problem in linking the valuation of a specific token, as token-issuers are continuously trying to get them listed.
Thailand’s SEC Stance on Utility Tokens
In 2021, under the “Rules, Conditions, and Procedures for Undertaking Digital Asset Businesses,” the SEC prohibited crypto exchanges in Thailand from listing utility tokens and certain types of cryptocurrencies. Specifically, meme tokens, fan tokens, Non-fungible tokens (NFT), and digital tokens were banned to protect the interest of digital asset traders.
The Thai SEC held an online conference on Monday, March 21, to discuss regulations for ready-to-use utility tokens, as per reports by local newspaper Nation Thailand.
Jomkwan Kongsakul, Assistant Secretary-General of the SEC, said utility tokens’ issuers need to disclose information on tokens in order for the SEC to regulate and approve its listing. Moreover, those issuers who conceal or disclose false information could face action from the authority.
In addition, she ensures that there is no intention to block any innovation. The aim is to only have all data available to traders which would help make an informed decision.
Moreover, the SEC clarifies the need for applying for authorization criteria to get the utility tokens listed. Without authorization, the agency will not be able to regulate listed tokens.
The SEC announces two types of authorization processes
First, the fast track route for simple utility tokens for consumption. The token to have available products to exchange and expiry date, with its value fixed and appropriate. Also, the simple utility tokens will be burned after use.
Second, the normal route for more complicated tokens would be a long process and more expensive. However, the SEC has tried to make the process less expensive.
The regulations are yet to be finalized and are pending discussions with stakeholders in related sectors.
Thailand’s government is becoming more open towards crypto, especially, with the recent announcement of relaxing taxes on cryptocurrencies and digital tokens.
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