Thailand’s Securities and Exchange Commission (TSEC) has removed restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects. The previous limit of 300,000 baht ($8,500) for retail investors in these tokens has been lifted, allowing increased participation in the real estate and infrastructure-backed digital token (REIT) market. The updated rules were officially published in the Royal Gazette on January 16, 2024.
This decision by the TSEC coincides with the growing momentum in Thailand’s cryptocurrency market. In September 2023, KBank, the country’s largest bank, acquired the crypto exchange business Satang, signaling a broader acceptance of digital assets within the Thai financial system.
The new regulations also pave the way for establishing local custodial wallets and secure digital storage solutions for holding digital assets. Custodial wallets can operate in Thailand if managed by publicly traded companies with experience in digital asset storage. The TSEC will oversee the issuance of permissions to digital asset service providers (DASPs) for commencing operations in new business lines.
The move to relax regulations on digital tokens aligns with the appointment of real estate tycoon Srettha Thavisin as Thailand’s prime minister in August 2023. Thavisin, the former CEO of Sansiri, one of Thailand’s largest real estate developers, is an active investor in digital assets and has introduced his digital token, the SiriHub Token.
In addition to these regulatory changes, the Thai government has announced plans to distribute 10,000 baht ($274) to citizens aged 16 and above through a network of digital wallets. This economic stimulus initiative, aimed at fostering economic growth and promoting digital literacy, has faced delays twice since Thavisin’s election.
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