Thailand’s Cryptocurrency Sandbox

Thailand’s securities watchdog has launched a sandbox for cryptocurrency businesses, aiming to balance regulatory restrictions and crypto innovation.

On Friday, the Thailand Securities and Exchange Commission (SEC) announced that the sandbox is designed to “facilitate experiments and the development of innovations supporting the efficient provision of digital asset services in the real-life context.”

The sandbox launch follows the SEC Board’s approval for its establishment in March, along with a public hearing in May.

The SEC indicated that the sandbox is intended for industry participants in six categories: digital asset exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers.

The sandbox is now open for applications. The Thai regulator will review applicants’ qualifications based on their capital adequacy, work systems, and management structures.

Earlier this year, Thai authorities made several crypto-positive moves. For instance, the Ministry of Finance extended its value-added tax exemption on cryptocurrency trading in February, and in March, the Thai SEC adjusted regulations to enable professional investors to invest in U.S. spot Bitcoin exchange-traded funds.