Support for new regulations on utility token issuance in Thailand
Thailand’s Securities and Exchange Commission (SEC) has initiated a public consultation on new rules that will allow exchanges or affiliated individuals to issue utility tokens, a strategic move to expand the region’s cryptocurrency ecosystem.
The proposal would require exchanges to provide the identities of individuals at token-issuing companies. The goal is to help the SEC track and investigate insider activities in the cryptocurrency market, especially as the market becomes increasingly global and complex.
Thailand Expands Control, Legal Development for Crypto Industry
Thailand is working to bring the cryptocurrency industry under tighter regulation and promote its development. The country recently announced it would open its doors to tourists using cryptocurrencies, demonstrating its determination to adapt to the global trend of digital finance.
However, just days later, regulators blocked access to OKX and Bybit exchanges due to unlicensed operations and money laundering concerns. Thailand is balancing expansion and control to build a solid foundation for the future of the cryptocurrency market.
Five-year tax cut policy aims to become a global financial center
In less than a few days, Thailand has removed capital gains tax for five years on crypto transactions, clarifying its efforts to compete with leading financial centers such as Singapore and Dubai. The government has approved a policy to exempt personal income tax on profits from selling crypto through qualified service providers, effective from January 1, 2025 to December 31, 2029.
Deputy Prime Minister Julapun Amornvivat stressed that the policy is a breakthrough, helping Thailand position itself as the world's digital financial center. The goal is to attract cryptocurrency businesses and investors, increase economic influence, and increase budget revenue.
Strategy to promote transparency and market trust
Thailand’s reform policy reflects past experiences with manipulation and insider trading in the crypto space. In 2022, an insider trading scandal erupted when the SEC accused Bitkub’s CTO of using inside information to profit from token sales ahead of a major deal.
In this context, manipulative behaviors such as front-running NFTs or the prosecution of Coinbase and Binance employees are raising the need to build a clear legal framework. The Thai government hopes that new policies will increase investor confidence and sustainably develop the cryptocurrency market.
Sustainable Development Trends for the Cryptocurrency Industry in Thailand
Through public consultations, Thailand aims to build a transparent and secure crypto ecosystem while facilitating businesses to issue legal utility tokens. This policy not only helps prevent illegal activities but also creates a solid legal basis for digital fintech activities.
In the global context, the completion of regulations on Token issuance helps Thailand enhance its image as an open country, a safe investment center for the global cryptocurrency market, and at the same time promote the strong development of the digital economy.
Source: https://tintucbitcoin.com/thailand-ban-quanh-khung-phat-nh-token-moi/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
