The Stock Exchange of Thailand (SET) has announced plans to apply for a digital asset operating license from the Finance Ministry. The Bangkok Post reported on Thursday that the SET intends to open an authorized digital asset exchange later this year.
According to the chairwoman of the Association of Securities Companies and vice-chairwoman of the SET’s board of governors, Pattera Dilokrungthirapop, “The [SET] wants to catch the growing investment trend of digital assets.”
If the plan comes to fruition, the Stock Exchange of Thailand will become one of a few global stock exchanges with its own, separate digital asset exchange. Doing so is expected to give the SET the upper hand regarding “large capital and trust”, according to Mrs. Pattera.
To obtain the license, the SET will need to implement a secure operating system and back-office systems, as well as an e-wallet for token storage.
It is the responsibility of the Securities and Exchange Commission (SEC) to regulate initial coin offerings and digital asset businesses, such as digital exchanges, brokers and dealers involved with digital asset transactions. However, it is the Finance Ministry that issues the operating licenses for digital asset businesses.
Thailand first announced its crypto licensing rules in July 2018. Within a month, 20 crypto firms had applied for the license. The rules require approval from the SEC before starting any digital asset business operations.
This would not be the first digital asset operating license for the SET. Last May, the exchange launched a crowdfunding marketplace built on blockchain technology. The marketplace, LiVE, uses blockchain technology to enable peer-to-peer trading, enabling startups to access capital from investors, including venture capitalists and institutional investors.
Additionally, the finance ministry approved digital asset operating licenses to the following firms last week: Bitcoin Exchange, Bitkub Online, Satang Corporation, and Coins TH Co. Two firms, Cash2coin and the Southeast Asia Digital Exchange were denied licenses, while a third application from Coin Asset is under consideration.
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