Thailand’s Securities and Exchange Commission is stirring the pot in the crypto world with its recent move to consult on new rules that could see exchanges issuing their own utility tokens. Announced on the SEC’s website, this proposal aims to allow exchanges—or even individuals tied to them—to mint utility tokens for blockchain transactions. But there’s a catch: the SEC plans to keep a tight leash on potential insider trading by requiring exchanges to disclose the identities of those linked to token issuers. This consultation, open until July 21, 2025, highlights the regulator’s delicate dance between fostering innovation and staving off illicit activities.
Navigating New Waters
This initiative comes amid a series of regulatory maneuvers by Thailand’s SEC that underscore its dual focus on innovation and compliance. Just last month, the SEC made waves by announcing that citizens would be barred from accessing crypto exchanges like Bybit and OKX starting June 28, citing breaches of the Digital Asset Business Act. This move sent ripples through the market, highlighting the SEC’s commitment to a tightly regulated environment.
Crypto analyst Natee Chavinda notes, “Thailand is walking a fine line. The government’s keen to promote blockchain innovation, but they’re equally wary of the risks that come with it.” Chavinda’s views echo a broader sentiment in the market—one of cautious optimism, tinged with uncertainty. This cautious approach mirrors recent developments in South Korea, where a Stablecoin Bill is set to allow companies to issue their own tokens, reflecting a regional trend towards regulatory engagement with digital assets.
The Token Tango
The proposed rules could significantly reshape Thailand’s crypto landscape. By allowing exchanges to issue utility tokens, the SEC is opening doors for new blockchain applications and business models. Utility tokens, distinct from cryptocurrencies like Bitcoin, enable specific functionalities within a blockchain ecosystem rather than serving as a medium of exchange.
The SEC’s proposal, however, is not without its stipulations. Any person or entity associated with the token issuance will be under scrutiny to prevent insider trading. This requirement is part of a broader strategy to ensure transparency and protect investors. The SEC’s intent is clear: to allow growth while keeping a close watch on market integrity. This approach is reminiscent of the SEC’s backing of an ‘Innovation Exemption’ for DeFi projects in the Ethereum ecosystem, highlighting a global trend of balancing innovation with regulatory oversight.
Historical Context and Market Impact
Thailand’s SEC has been gradually expanding its list of approved tradable tokens. Earlier this year, in March, it added Tether’s USDT and Circle’s USDC to its roster, which previously included heavyweights like Bitcoin (BTC), Ether (ETH), and Ripple’s XRP. This inclusion reflects the regulator’s measured approach to cryptocurrency, balancing market demand with regulatory oversight.
Industry insiders are watching closely. Ploy Srisuwan, a blockchain consultant, suggests that “this move could catalyze a new wave of token-based projects in Thailand, but the regulatory framework will be key.” Srisuwan’s statement underscores the broader implications of the SEC’s consultation. It’s not just about new rules; it’s about setting a precedent for how digital assets are managed in the region.
Looking Forward
As the July 21 deadline for the consultation looms, stakeholders across the crypto spectrum are weighing in. The feedback gathered will likely shape the final form of these regulations, with potential impacts reaching beyond Thailand’s borders. Crypto exchanges, eager to innovate, may find themselves navigating a more complex regulatory landscape.
The real question is how these changes will ripple through the global crypto market. With Thailand positioning itself as a potential hub for blockchain technology, the outcomes of this consultation could influence regulatory approaches in other jurisdictions. The world will be watching as Thailand’s SEC takes these pivotal steps, raising questions about the future of cryptocurrency regulation on a global scale.
In the end, while the consultation is a clear signal of Thailand’s intent to embrace blockchain technology, it also serves as a reminder of the challenges that come with it. The balance between innovation and regulation is a tightrope walk, and Thailand’s next moves will be closely scrutinized. As always in the crypto world, uncertainty is the only certainty.
Source
This article is based on: Thai SEC Consults on Rules Allowing Exchanges to Offer Utility Tokens
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
