The Securities and Exchange Commission of Thailand (SEC Thailand) has launched a regulatory sandbox for digital assets, according to an August 9 press release.
The initiative aims to support the testing and development of services related to digital assets, by providing a structured environment in which companies 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.
Cryptographic Sandbox
Sandbox participants may include digital asset exchanges, brokers, advisors, fund managers, and custodians. The program provides these companies with the opportunity to refine their services, improve efficiency, and reduce operational costs, while adhering to regulatory guidelines tailored to the unique challenges of digital assets.
The SEC of Thailand has set out a framework that requires continuous reporting, transparency and communication between participants and the regulator. In addition, the sandbox includes provisions for risk management and requires participants to 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 programme aims to increase the range of services available to investors while ensuring that these developments occur in a structured and regulated context.
Application process
Companies interested in joining the sandbox can begin submitting applications on August 9. The SEC will review these applications within 60 days, assessing each applicant’s readiness and suitability. Approved participants will have one year to complete their tests, with the option to extend the duration or conclude the test based on the results 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 the controlled development of new technologies.
This initiative is part of Thailand’s broader goals to foster innovation in the financial sector and support the growth of digital assets in the region. The SEC of Thailand encourages eligible companies to apply and participate in the program.
