The Securities and Exchange Commission of Thailand (SEC Thailand) has launched a Digital Asset Regulatory Sandbox, according to an Aug. 9 press release.
The initiative is designed to support the testing and development of services related to digital assets, providing a structured environment where businesses can explore innovative solutions within a regulated framework.
The sandbox aims to facilitate the integration of new financial technologies while maintaining a flexible regulatory approach that addresses the specific risks associated with digital asset transactions.
Crypto sandbox
Participants in the sandbox may include digital asset exchanges, brokers, advisors, fund managers, and custodians. The program offers these businesses the opportunity to refine their services, improve efficiency, and reduce operational costs, all while adhering to regulatory guidelines that are adjusted to the unique challenges of digital assets.
The SEC Thailand has outlined a framework that requires continuous reporting, transparency, and communication between participants and the regulatory body. Additionally, the sandbox includes provisions for risk management and necessitates that participants have adequate financial resources, qualified personnel, and robust operational systems.
The Digital Asset Regulatory Sandbox aims to provide a safe environment for innovation in the digital asset sector. The program seeks to increase the range of services available to investors while ensuring that these developments occur within a structured and regulated context.
Application Process
Businesses interested in joining the sandbox can begin submitting applications on Aug. 9. The SEC will review these applications within 60 days, assessing each applicant’s readiness and suitability. Approved participants will have one year to conduct their testing, with options to extend the duration or conclude the test based on the outcomes and regulatory requirements.
The sandbox program also includes an exit strategy to ensure a smooth transition out of the testing phase, minimizing risks to the financial market while allowing for the controlled development of new technologies.
This initiative aligns with Thailand’s broader goals of fostering innovation in the financial sector and supporting the growth of digital assets within the region. The SEC Thailand encourages eligible businesses to apply and participate in the program.