Regulator adjusts rules for digital token investment
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Regulator adjusts rules for digital token investment

The SEC is removing the ceiling for retail investment in digital tokens.
The SEC is removing the ceiling for retail investment in digital tokens.

The Securities and Exchange Commission (SEC) has abolished the ceiling for retail investment in real estate- and infrastructure-backed initial coin offerings, previously limited to 300,000 baht per offering, effective from Jan 16 to support the use of technology for fundraising.

In addition to ensuring appropriate investor protection, the SEC said its role includes encouraging the use of technology and innovation in fundraising to drive sustainable growth of the capital market and support development of the digital economy.

The regulator adjusted the rules regarding digital token investment by removing restrictions for retail investors in real estate- and infrastructure-backed digital tokens, as well as tokens with infrastructure revenue streams as underlying assets, in alignment with product risks.

The SEC is reviewing the criteria to support the creation of custodial wallet provider businesses for digital asset operators that have common major shareholders, it said in a statement.

Digital asset operators that want to operate other businesses are required to obtain permission from the SEC before proceeding.

The move is to ensure the efficient supervision of such businesses, said the SEC.

Digital asset businesses must not provide services through other operators that operate illegally to ensure the credibility of the digital asset industry, said the regulator.

The announcement specifying the criteria was published in the Royal Gazette and became effective from Jan 16, the statement noted.

In a related development, analysts anticipate the Stock Exchange of Thailand (SET) index will remain sideways down after slipping below the 1,400-point range on Wednesday.

Analysts said the Thai bourse remains largely influenced by uncertainties surrounding the timing of the Federal Reserve's interest rate cut and implementation of the digital wallet scheme.

Following a sharp decline on Wednesday amid foreign equity outflows as the dollar and US Treasury yields spiked, the SET index should remain sideways down with some possible rebounds, said Rakpong Chaisuparakul, senior vice-president of KGI Securities (Thailand).

"We expect the market correction to continue given further repricing of investors regarding the timing of interest rate cuts in the US and Europe," said Mr Rakpong.

"Given this backdrop, we expect foreign outflows to continue."

Asia Plus Securities (ASPS) acknowledged that in addition to global interest rate concerns and China's disappointing GDP growth, delays of the digital wallet policy hurt several sectors on the SET, namely tourism, shopping malls, consumer goods and food.

"The digital wallet scheme may be delayed or shelved, leading to negative sentiment on the SET index following positive sentiment after the policy was announced," ASPS said in a research note.

"However, this is good for Thailand's financial position in the future without this burden, allowing other stimulus measures to be launched. This might strengthen the baht."

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