Thailand launches crypto regulatory sandbox to kick-off adoption h3>

Thailand’s Securities and Exchange Commission (SEC) has announced the launch of a Digital Asset Regulatory Sandbox on Aug. 9.

The initiative will enable the testing and development of services related to digital assets within a structured environment, facilitating the integration of new financial technologies.

The sandbox will prioritize the specific risks associated with digital asset transactions, aiming to foster innovation while maintaining a flexible regulatory approach.

Participants in the sandbox may include digital asset exchanges, brokers, advisors, fund managers, and custodians, who will be able to refine their services, improve efficiency, and reduce operational costs within a regulated framework tailored to digital assets.

The SEC Thailand has emphasized continuous reporting, transparency, and communication between participants and the regulatory body throughout the program.

Furthermore, the sandbox includes provisions for risk management and requires participants to possess adequate financial resources, qualified personnel, and robust operational systems.

The Digital Asset Regulatory Sandbox is designed to create a safe environment for innovation in the digital asset sector, expanding the range of services available to investors within a structured and regulated context.

Interested businesses can submit applications to join the sandbox starting 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.

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