Under the act amended by Thailand’s Securities and Exchange Commission (SEC), the coverage scope for scripless transactions – in which only book entries represent the security holding and settlement, and no physical certificate is issued or exchanged – has expanded to cover the primary market for all types of securities – the Bangkok Post reports.
Before the amendment, scripless transactions were only allowed in the secondary market, with traditional securities transactions in the primary market requiring paper-based scripts at issuance.
The amended act introduces a legal framework for security token offerings (STOs) in Thailand, making a tokenized securities depository platform and issuance of digital shares in the primary market possible.
Commenting on the development, SEC Deputy Secretary-General Tipsuda Thavaramara said that the amendment will have a major impact by providing a legal basis to support the country’s capital market tokenization platform.
“The law also opens opportunities for additional market players and supports the idea of entirely digital shares,” she said in an interview with the Bangkok Post.
Since May 14, 2018, all aspects of virtual trade in Thailand have been covered under the Royal Decree on the Digital Asset Businesses, separate from, but at times overlapping with the Securities and Exchange Act.
According to the SEC, depending on their character, tokens can fall under the Royal Decree or the Securities and Exchange Act. Those deemed securities are traded via the Stock Exchange of Thailand while digital assets are made available through the country’s three digital assets exchanges.