Thailand’s financial market regulator unveiled a regulatory sandbox to test crypto products and services.
The Securities and Exchange Commission of Thailand (SEC) announced the launch of the Digital Asset Regulatory Sandbox, a software environment for developing and testing cryptocurrency services. The sandbox is designed to experiment with digital asset services under the supervision of local regulators.
The tool will allow participants in the local crypto market to evaluate the services they offer for potential risks and negative consequences for the country’s financial market. The regulator invited interested parties to participate in the sandbox to minimize the potential impact of their products on the local economy. The initiative aims to promote a clear and concise regulatory framework for digital assets.
The SEC encourages the use of its sandbox by:
- crypto exchanges;
- digital asset brokers and dealers;
- fund managers;
- advisors;
- custodial crypto wallet providers.
The main objective, according to the regulator, is to support innovation and ensure the stability of the local financial system in the face of growing interest in digital assets.
While Thai authorities are seeking a friendlier approach to regulating the cryptocurrency sector, the country is also expanding the taxation of digital assets and some crypto services remain banned.
