On 15 August 2023, the SEC Board Meeting No. 13/2566 passed a resolution approving the principles for amending the Emergency Decree on Digital Asset Businesses to ensure that the supervision of digital asset issuance and offering in the primary market and the undertaking of digital asset businesses in the secondary market remains in compliance with the Emergency Decree on Digital Asset Businesses and in alignment with the specific characteristics and risks associated with different types of digital assets* while adhering to international guidelines and the practices of foreign regulators.

The SEC is therefore conducting the public hearing on the proposed amendments. Key highlights of the proposed amendments include:

          (1) Revision to the definition of digital asset by adjusting the definition to be Crypto Assets** that are created using cryptography method in a decentralized ledger network (Distributed Ledger Technology – DLTs) or similar technology instead of being defined as cryptocurrency and digital token. Additionally, the SEC board will be empowered to prescribe the list of digital assets that falls under the supervision (positively listed);            

          (2) Amendments to the supervision of the issuance and offering of digital assets under the SEC supervision in the primary market, which includes assets without the characteristics related to fundraising and without the expectations of scheme success or the consideration of the qualifications of the person responsible for the operation of the scheme. In this regard, the issuance and offering of digital assets would be required to include information disclosure through registration with the SEC Office instead of applying for approval. In addition, the requirement for digital asset offering via an ICO portal would be repealed in order that the oversight of digital asset offering would be suitable for the risks associated with the digital assets to be offered;

With regard to the supervision of digital asset business operators, the SEC would maintain the existing guidelines prescribed under the Emergency Decree on Digital Asset Businesses, which involve the supervision through licensing and the issuance of rules on business operations, with a focus on investor protection.    

          (3) Modifications and amendments to other related principles. For example, revision to the oversight of persons with the power of management and major shareholders, the imposition of penalties, and statues of limitations for legal proceedings. These proposed amendments are intended to enhance supervisory efficiency and alignment with the supervisory guidelines under the Securities and Exchange Act B.E. 2535 (1992).

The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=939 and the legal hub system at https://law.go.th/. Stakeholders and interested parties are welcome to submit comments and suggestions via the websites or emails: pinyapat@sec.or.th or phireeyaphon@sec.or.th. The public hearing ends on 23 October 2023.

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Remarks:

* Based on the principle of “same risk, same supervision outcome.”

** the Digital assets specified under such technologies share four common elements, i.e., (1) Issuance and representation in a digital form, (2) Intangible asset, (3) Right to control by the holders, and (4) Transferability.