In October 2024, the SEC Board approved a public hearing on the proposed principles for amending the Notification of the Ministry of Finance regarding Digital Asset Business Licensing B.E. 2561 (2018). Under the proposal, the qualifications or prohibited characteristics of digital asset business license applicants, their directors and major shareholders under Clause 3* (10), (11), and (12) (b), (c) of the Notification of the Ministry of Finance and related regulations would be removed to align with securities regulations and prevent negative impacts on certain types of digital asset business operators with similar characteristics that may inadvertently exceed their licensed scope. Such cases could lead to disqualification and potential license revocation, which could affect a large number of their clients.
 
The SEC is therefore conducting this public hearing on the proposed amendments to ensure that the qualifications of digital asset business operators are appropriate and consistent with securities regulations. This approach also aims to protect investors in cases where digital asset business operators provide services beyond the scope of their licenses, leading to license revocation for actions that do not significantly affect operational systems or service delivery.  

In any case, digital asset business operators still have the duty to maintain qualifications related to individuals who serve as their directors, executives or major shareholders as it is part of the mechanism preventing persons involved in fraudulent, deceptive or corrupt activities from holding managerial or decision-making power within digital asset business operators.

The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1028  and the legal hub at http://law.go.th/listeningDetail?survey_id=NDYxOERHQV9MQVdfRlJPTlRFTkQ= Stakeholders and interested parties are welcome to submit comments and suggestions via the above websites or email: jirapat@sec.or.th or thanapatk@sec.or.th. The public hearing ends on 27 November 2024.

Remark:

* Clause 3   The applicant shall receive a license upon meeting the following qualifications:   

                     (10)  Not currently being imposed with a criminal complaint by the SEC Office or not being under legal proceedings as a result of a criminal complaint filed by the SEC Office for any offense related to undertaking a digital asset business, a securities business or a derivatives business without license or registration;

                    (11) Not being a person who has been subject to the final court decision for conducting business without license or registration, unless the penalty under the final court decision has been released for at least 10 years;

                   (12) Directors, executives and major shareholders of the applicant shall meet the following requirements:

                               (b) Not being involved or having been involved in or supporting the actions of any person who is currently imposed with a criminal complaint or legal proceedings for the offense under (10); 

                              (c) Not being involved or having been involved in or supporting the actions of any person who is subject to the final court decision for the offense under (11), regardless of whether the court has suspended the sentence, unless such person has been released from the penalty or has completed the suspension term for at least 10 years.