Thailand's Securities and Exchange Commission (TSEC) has lifted restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects. Previously, retail investors were limited to investing a maximum of 300,000 baht ($8,500) in these types of tokens.
The updated rules, published in the Royal Gazette on January 16, 2024, remove this limit, allowing retail investors to invest more freely in the real estate and infrastructure-backed digital token (REIT) market.
The TSEC's decision to lift the investment limit comes as the country's cryptocurrency market is gaining momentum. In September 2023, Thailand's largest bank, KBank, acquired the crypto exchange business Satang, signaling the growing acceptance of digital assets in the Thai financial system.
The new rules also allow for the creation of local custodial wallets, which are secure digital storage solutions for holding digital assets. Custodial wallets can operate in Thailand if they are operated by publicly traded companies with experience in digital asset storage. The TSEC will also be responsible for issuing permissions to digital asset service providers (DASPs) to start operations in new business lines.
Related: Thailand’s KBank acquires crypto exchange business Satang
The government's move to relax regulations on digital tokens aligns with the appointment of real estate tycoon Srettha Thavisin as Thailand's prime minister in August 2023. Thavisin, the former CEO of Sansiri, one of Thailand's largest real estate developers, is an active investor in digital assets and has his own digital token called the SiriHub Token.
In addition to the regulatory changes, the Thai government has also announced plans to distribute 10,000 baht ($274) to citizens over the age of 16 through a network of digital wallets. This initiative, aimed at boosting the economy and promoting digital literacy, has been delayed twice since Thavisin's election.
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