The Securities and Exchange Commission (“SEC”) sees the new opportunity for small businesses and soft power enterprises to raise capital through digital tokens as there are at least 19 companies, mainly real estate and software businesses, interested in utilizing investment tokens for fund raising; three companies have successfully raised funds via digital tokens, for a total project value of 4.8 billion baht.
To facilitate and enhance confidence in fundraising and investing in Initial Coin Offering (ICO) without harming the adoption of technology in business and industry, the SEC has amended the criteria regarding utility tokens and enhanced the governance mechanism for both primary and secondary markets.
Mainly, non-financial ready-to-use token which is merely issued for consumption purposes or for certifying any rights (Group 1 utility token) and other utility token which is not intended to be listed for trading is exempted from liability to obtain approval for the offering. Meanwhile, the ready-to-use utility token other than group 1 (Group 2 utility token), which intends to be listed for trading on digital asset exchanges, must obtain approval for the offering from the SEC and disclose information as required. However, the utility token must not be used for staking purposes nor be used as a means of payment (MOP) as defined by the Bank of Thailand.
Additionally, the SEC has launched a digital asset sandbox, enabling businesses to test innovative services under regulatory supervision, fostering a safer, more transparent environment for digital fundraising.
The SEC also updated its guidelines and criteria for digital asset exchanges to align with international standards. The amendments are effective on 13 August 2024, reflecting the SEC’s approach in creating a strong foundation for digital fundraising and trading in Thailand.