The SEC Urges Listed Companies on Digital Asset Investments
On 17 September 2021, due to the digital asset trading considered a high-risk depending on factors, the Office of the Securities and Exchange Commission (“SEC”) sent its circular to all listed companies by advising all listed companies that have invested or have plans to invest in digital assets to consider investing prudently and cautiously because their investment might significantly affect the financial position or operating results of their businesses.
In this regard, the SEC has reiterated that all listed companies should take action and consider various relevant factors such as the following:
- risk assessment;
- potential impacts;
- measures and risk management mechanisms ;
- readiness of work systems and personnel;
- study, analysis and selection of digital assets; and
- measures to monitor investments.
In addition, a listed company should consider its disclosing information on digital asset investments through the information system of the Stock Exchange of Thailand, a listed company website, and in the annual registration statement/annual report (Form 56-1 One Report) in order for investors to receive accurate and sufficiently significant information for their investment decisions.
Furthermore, the SEC suggests investing in digital assets through licensed digital asset business operators which are supervised by the SEC. This would ensure that such investments or executed transactions are protected by law as all digital asset operators in Thailand are required to obtain a license under the Royal Decree on Digital Asset Businesses B.E. 2561 (A.D. 2018). The current lists of Digital Asset Exchanges are as follows:
- Satang Pro
The current lists of Digital Asset Brokers are as follows:
- Coins TH
The current Digital Asset Dealer is Coins TH
Legal Insight Vol. October 2021 of Bangkok Global Law
The PDF file can be downloaded via the link as set below.