Pursuant to the Emergency Decree on Digital Asset Businesses of 2018, digital asset business operators are required to obtain a relevant license from the Minister of Finance. Since 2018, three types of digital asset business licenses have been added to the licensing list, making the total of six license types, namely: Digital Asset Exchange, Digital Asset Broker, Digital Asset Dealer, Digital Asset Advisor, Digital Asset Fund Manager, and Custodial Wallet Provider. In this regard, it is important to ensure that licensing process effectively screen the readiness and qualifications of the license applicants, and to ensure that the licensing process is flexible and in alignment with the numbers of license types and license applicants, as well as the time for developing of the digital asset business work systems.   

The SEC Board has passed a resolution approving the proposed amendments to the digital asset business licensing process and endorsing the proposed amendments to the regulations regarding the credibility of digital asset business operators to enhance clarity and appropriateness of the regulations, while elevating the quality, trust, and confidence in the overall digital asset market. 

The SEC is therefore conducting a public hearing on the proposed amendments. The major changes to be introduced are as follows:  

(1) Specifying the process of SEC Office in assessing whether the applicant submits a complete application and required documents;  

(2) Reducing a ban period for reapplying in the case where the application is withdrawn by the applicant, from six to three months;  

(3) Clarifying the process where the Minister of Finance does not agree with the recommendation of the SEC Board regarding the application and setting out the process for informing the application result; 

(4) Extending the time period for commencing the operation of the business from 180 days to 270 days from the date of obtaining the license. Under the proposed rule, the licensee could apply for an extension of the activation deadline for not more than 120 days;

(5) Enhancing the eligible qualifications of directors, executives and major shareholders of digital asset businesses whereby they must not hold such positions in a company whose license is denied or revoked, or whose license application is withdrawn, or whose record shows participation in or support of wrongdoings of companies liable to operate a securities business, derivatives business, or digital asset business without a license or registration.  

The consultation paper is available on https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=963. Stakeholders and interested parties are welcome to submit comments and suggestions via the website or email: jirapat@sec.or.th, jira-it@sec.or.th, thanapatk@sec.or.th, or achiraya@sec.or.th. The public hearing ends on 9 February 2024.

________________________