Thai Cabinet Approves Electronic Securities Bill to Modernize Capital Markets
The new legislation aims to facilitate digital asset transactions and improve investor protection in Thailand’s financial landscape.
The Cabinet of Thailand approved the draft Electronic Securities Bill on June 10, which seeks to enhance the legal framework for financial transactions by supporting the issuance of assets through electronic platforms.
This initiative signifies a move towards modernizing the capital markets and facilitating the use of tokens and bonds compatible with contemporary technological standards.
PORNANONG BUSARATRAKUL, Secretary-General of the Securities and Exchange Commission (SEC), stated that this legislation will serve as a foundational step for Thailand’s capital markets as they transition into a digital era.
The bill proposes to simplify the trading of various securities, including equity instruments, investment units, and debt instruments, by easing access for retail investors and enhancing protections for all investors.
The legislation envisions a completely electronic securities trading process, which includes the recording and transferring of data as well as collateral management.
This electronic format aims to replace the outdated paper certificate system with a more efficient and validated electronic record.
In tandem with the Electronic Securities Bill, the SEC is preparing secondary regulations that will mandate the issuance of electronic securities instead of physical certificates.
The expected implementation of these measures is set for 2025, contingent on parliamentary approval.
Furthering this initiative, the Cabinet also approved the issuance of G-token bonds, with the Public Debt Management Office (PDMO) tasked with the issuance in a tokenization format.
This approach is designed to allow greater flexibility in asset transfers, optimizing the investment process for market participants.
The SEC is actively collaborating with various agencies to establish transaction standards and build the necessary infrastructure to support these digital advancements in the capital markets.
This initiative aims to facilitate comprehensive electronic transactions, encompassing the entire process from the issuance and sale of securities to their transfers and management as collateral.
The Finance Ministry of Thailand announced on February 14, 2023, that the Cabinet approved the principles of four significant draft bills aimed at revamping the capital markets infrastructure, which include updates to the Securities and Exchange Act, the Futures Trading Act, the Trust for Capital Market Transactions Act, and amendments to the Digital Asset Business Act.
Each bill aims to incorporate suitable technologies for capital market transactions while enhancing regulatory transparency and legal enforcement.
Notably, the Securities and Exchange Act will undergo revisions focusing on six key areas, such as supporting electronic processes in capital markets and aligning regulations with international standards.
The SEC has also expressed intentions to develop a separate draft law specifically for electronic securities to expedite its implementation.
PORNCHAI THIRRAVEJA, Director of the Fiscal Policy Office at the Finance Ministry, commented that the amendments would bolster technology use in product development and transactions, thereby encouraging public investment, improving living standards, and boosting competitiveness.
Furthermore, Thailand is on track to introduce G Token bonds, marking a pioneering moment in the global landscape as the first instance of government-issued digital tokens in transactions.
Anticipated to be launched in August 2025, G Tokens are expected to be tradable on secondary markets, representing a significant development in Thailand's digital finance sector.
Additionally, plans are underway to unveil the 'Digital Baht' this year, which will take the form of a digital token, enhancing the ease of monetary transactions.
Despite concerns within the industry regarding stringent regulations, insiders view this as an opportunity for clarity and growth.
Industry players argue that these clearly defined guidelines will facilitate investment and operations in Thailand, promoting a favorable business environment.
Currently, Bitkub Online Co., Ltd. has reported approximately 5 million registered users and an average daily trading volume of about 2 billion baht, with spikes as high as 18 billion baht during market surges.
Expectations are high regarding potential reforms in cryptocurrency taxation, where there is a push for exempting profits from crypto transactions from taxation, akin to the treatment of profits from stocks listed on the Stock Exchange of Thailand.
This initiative signifies a move towards modernizing the capital markets and facilitating the use of tokens and bonds compatible with contemporary technological standards.
PORNANONG BUSARATRAKUL, Secretary-General of the Securities and Exchange Commission (SEC), stated that this legislation will serve as a foundational step for Thailand’s capital markets as they transition into a digital era.
The bill proposes to simplify the trading of various securities, including equity instruments, investment units, and debt instruments, by easing access for retail investors and enhancing protections for all investors.
The legislation envisions a completely electronic securities trading process, which includes the recording and transferring of data as well as collateral management.
This electronic format aims to replace the outdated paper certificate system with a more efficient and validated electronic record.
In tandem with the Electronic Securities Bill, the SEC is preparing secondary regulations that will mandate the issuance of electronic securities instead of physical certificates.
The expected implementation of these measures is set for 2025, contingent on parliamentary approval.
Furthering this initiative, the Cabinet also approved the issuance of G-token bonds, with the Public Debt Management Office (PDMO) tasked with the issuance in a tokenization format.
This approach is designed to allow greater flexibility in asset transfers, optimizing the investment process for market participants.
The SEC is actively collaborating with various agencies to establish transaction standards and build the necessary infrastructure to support these digital advancements in the capital markets.
This initiative aims to facilitate comprehensive electronic transactions, encompassing the entire process from the issuance and sale of securities to their transfers and management as collateral.
The Finance Ministry of Thailand announced on February 14, 2023, that the Cabinet approved the principles of four significant draft bills aimed at revamping the capital markets infrastructure, which include updates to the Securities and Exchange Act, the Futures Trading Act, the Trust for Capital Market Transactions Act, and amendments to the Digital Asset Business Act.
Each bill aims to incorporate suitable technologies for capital market transactions while enhancing regulatory transparency and legal enforcement.
Notably, the Securities and Exchange Act will undergo revisions focusing on six key areas, such as supporting electronic processes in capital markets and aligning regulations with international standards.
The SEC has also expressed intentions to develop a separate draft law specifically for electronic securities to expedite its implementation.
PORNCHAI THIRRAVEJA, Director of the Fiscal Policy Office at the Finance Ministry, commented that the amendments would bolster technology use in product development and transactions, thereby encouraging public investment, improving living standards, and boosting competitiveness.
Furthermore, Thailand is on track to introduce G Token bonds, marking a pioneering moment in the global landscape as the first instance of government-issued digital tokens in transactions.
Anticipated to be launched in August 2025, G Tokens are expected to be tradable on secondary markets, representing a significant development in Thailand's digital finance sector.
Additionally, plans are underway to unveil the 'Digital Baht' this year, which will take the form of a digital token, enhancing the ease of monetary transactions.
Despite concerns within the industry regarding stringent regulations, insiders view this as an opportunity for clarity and growth.
Industry players argue that these clearly defined guidelines will facilitate investment and operations in Thailand, promoting a favorable business environment.
Currently, Bitkub Online Co., Ltd. has reported approximately 5 million registered users and an average daily trading volume of about 2 billion baht, with spikes as high as 18 billion baht during market surges.
Expectations are high regarding potential reforms in cryptocurrency taxation, where there is a push for exempting profits from crypto transactions from taxation, akin to the treatment of profits from stocks listed on the Stock Exchange of Thailand.
