Thailand’s Securities and Exchange Commission (SEC) has made a significant move by removing restrictions on retail investors’ ability to purchase digital tokens backed by real estate or infrastructure projects. Previously, investors were capped at a maximum investment of 300,000 baht ($8,500) in these tokens. The revised regulations, published in the Royal Gazette on January 16, effectively eliminate this investment limit, providing retail investors with more flexibility in navigating the real estate and infrastructure-backed digital token (REIT) market.
This decision from the SEC comes amidst a burgeoning cryptocurrency market within the country. In September 2023, KBank, Thailand’s largest bank, acquired Satang, a crypto exchange business, indicating a growing acceptance of digital assets within the Thai financial landscape. Furthermore, the updated rules pave the way for the establishment of local custodial wallets, secure digital storage solutions for holding digital assets.
These wallets can operate within Thailand if overseen by publicly traded companies with a track record in digital asset storage. The SEC will oversee the issuance of permissions to digital asset service providers (DASPs) looking to expand into new business lines. The government’s decision to relax regulations on digital tokens aligns with the appointment of real estate magnate Srettha Thavisin as Thailand’s prime minister in August 2023.
Thavisin, former CEO of Sansiri, one of Thailand’s largest real estate developers, is known for his active involvement in digital assets and even has his own digital token, the SiriHub Token. In addition to regulatory reforms, the Thai government has unveiled plans to distribute 10,000 baht ($274) to citizens aged 16 and above through a network of digital wallets. However, this initiative, aimed at stimulating the economy and fostering digital literacy, has faced delays twice since Thavisin’s assumption of office.