With the concept of tokenizing a company's shares and bond via blockchain gradually finding footing around the world, the Thai National Legislative Assembly has made an important call.
According to the local news agency, Bangkok Post, the lawmakers decided earlier this month that it would allow Thai companies to issue tokenized securities using blockchain technology.
The lawmakers will amend the Thai Securities Act to incorporate this new method of securities distribution and also issue licenses to companies wishing to embrace the model.
As per the report, another exciting conclusion reached by the parliament is that Initial Public Offerings (IPOs), Initial Coin Offerings (ICOs) and Security Token Offering in Thailand will use a scripless issuance method to sell their assets.
In simpler terms, no physical certificates have to be issued from the company to the public before the token sale is confirmed.
To make the issuance process even faster for companies, the Thai SEC also said it would allow other digital asset custodians to apply for depository licenses.
The new development means that Thailand Securities Depository Co Ltd, a subsidiary of the Stock Exchange of Thailand will no longer be the only depository company serving the Thai market.
Speaking about how different projects that apply for a license will be classified, an official of the Thai SEC, Pariya Techamuanvivit, said the nature of a company's offering would decide whether the token issued by the project will fall under the Thai Digital Asset Act or existing securities law for traditional assets.
The Thai Digital Asset Act is the country's regulatory framework for cryptocurrencies and Initial Coin Offerings (ICOs).
As we've reported in previous times, Thailand is one of the few countries in Asia that boasts a properly regulated crypto and blockchain ecosystem.
In January, the Stock Exchange of Thailand (SET) even confirmed that it would apply for a digital asset exchange license with the Thai SEC, ahead of launching a crypto exchange subsidiary later this year.
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