The recent news from the corridors of the Thai cryptocurrency is that the Stock Exchange of Thailand (SET) aims to open a new authorized digital stock exchange and plans to apply for a digital asset management license. According to the report published in Bangkok, the Thailand Stock Exchange (SET) is examining a digital asset management license in order to grasp the growing trend of digital asset investment and become a major player in the Southeast Asian region.
Thailand's purse appears to be earning the cryptocurrency market
According to the press release, Pattera Dilokrungthirapop, president of the Association of Securities Companies and vice president of SET's board, said the exchange is very optimistic about its plans. The securities companies that are part of the SET plan are applying to become brokers and dealers for the trading of digital assets on the new exchange.
Although not many players have been successful in obtaining licenses from the Ministry of Finance of Thailand, SET is deemed to have an advantage over other players in terms of "great capital and trust". Having said that the exchange would still need to set up a good operating system and process details such as back-office systems and a token e-wallet.
The Southeast Asian nation had approved a royal decree on digital assets in the last year of May and has been effective ever since. According to the decree and the regulations, the roles of the regulators are practically divided. The Securities and Exchange Commission of Thailand deals with the regulation of initial coin offerings and other assets of digital assets, including digital exchanges, brokers and dealers involved in transactions of digital assets, while the Ministry of Finance is the authority and has the right to issue operating licenses for companies trying to manage digital asset assets.
The interest in cryptocurrencies and digital resources is increasing in Thailand and at the moment there are many companies in the queue to be applied to become brokers and dealers in the digital asset class.
The news also quotes Pattera saying:
"We [securities firms] are not in a hurry to enter the digital asset trade, as some companies still manage their core business, while cryptocurrencies are just one of the [digital] asset classes where brokers can adapt their trading platforms to serve digital trading "
He also added,
"Securities companies are currently waiting for the SET to apply for a license – for us, digital resources are expected to grow in the future as investors gain more understanding of this asset class."
Cryptocurrency regulations can hinder the plans
While SET is optimistic, the Thai Ministry of Finance has rejected the last application for the cryptocurrency exchange it had examined. The Ministry of Finance of the country, under the recommendation of the SEC Board of Directors, has decided to reject the application of Coin Asset Co. Ltd. to manage a cryptocurrency exchange.
Previously, the Thai Securities and Exchange Commission (SEC) had granted digital asset asset licenses to four applicants: "The recipient of these licenses includes three grants, namely Bitcoin Exchange Co. Ltd. (Bx), Bitkub Online Co. Ltd (Bitkub) and Satang Corporation (Satang Pro) while the approved broker-dealer is Coins Th Co. Ltd.
It is incredible to see how a small country like Thailand is making great strides in the development and adoption of cryptocurrencies and it seems that the country can become a huge cryptocurrency market in Asia, challenging Japan and South Korea.
Does Thailand have the potential to become a cryptocurrency hub in Asia? Let us know your opinions on the same