Thai SEC Unshackles Retail Investors in Real Estate-Based Digital Tokens

<p>Thailand's
Securities and Exchange Commission (SEC) has announced the removal of
investment restrictions on retail investors who engage in real estate-based
digital tokens. The regulatory update, effective since January 16, comes after
a public consultation period and underscores the Thai SEC's commitment to
adapting to the landscape of digital assets.</p><p>Unleashing
Retail Investors into Real Estate-Based Digital Tokens</p><p>The
Thai SEC revealed on January 18 that its committee had revised the criteria for
investing in digital tokens to provide investors with protection
measures. Notably, retail investors are no longer bound by previous limitations
when purchasing real estate-based digital tokens. The move is expected to
stimulate investment in this sector and aligns with the regulator's goal of
striking a balance between investor safeguarding and encouraging financial
innovation.</p><p>Previously,
<a href="https://www.financemagnates.com/tag/retail-investors/">retail
investors</a> were restricted to an investment cap of $8,430 (300,000 baht).
However, with the recent changes, investors can now explore opportunities in
digital tokens linked to real estate assets or infrastructure without these
financial constraints.</p><p>To
ensure responsible expansion within the digital asset space, the Thai SEC
emphasized that entities seeking to diversify into other businesses need to
obtain prior approval. This measure is designed to maintain oversight and
prevent potential risks to investors.</p><blockquote><p lang="en" dir="ltr">"Thai SEC removes investment restrictions on real estate-based digital tokens, benefiting retail investors. The move aims to protect investors while promoting innovation, effective Jan. 16. Read more: <a href="https://t.co/iRcq0NPqe5">https://t.co/iRcq0NPqe5</a>"</p>— Bony Bean (@bonybean) <a href="https://twitter.com/bonybean/status/1748293663598211445?ref_src=twsrc%5Etfw">January 19, 2024</a></blockquote><p>Calls
for Adherence from Digital Asset Service Providers</p><p>The
regulatory update followed a period of public consultation initiated by the
SEC, during which stakeholders had the opportunity to comment on the draft
proposals introduced on September 23. The regulator reported that a majority of
respondents endorsed the principles outlined in the draft, affirming a general
alignment with the regulatory direction.</p><p>Beyond
addressing investment restrictions, the updated criteria also touch upon the
establishment of custodial wallet provider businesses. Digital asset entities
seeking diversification are now required to obtain approval from the SEC,
reinforcing the regulator's commitment to upholding legal standards within the
crypto market.</p><p>In
a statement, the <a href="https://www.financemagnates.com/tag/security-and-exchange-commission-of-thailand/">Thai
SEC</a> urged all <a href="https://www.financemagnates.com/tag/digital-asset/">digital
asset</a> service providers to operate within the confines of the law,
emphasizing the importance of enhancing the overall quality and reliability of
the Thai <a href="https://www.financemagnates.com/tag/crypto/">crypto</a>
market. </p>

This article was written by Tareq Sikder at www.financemagnates.com.