Thailand's Securities and Exchange Commission (SEC) has removed restrictions on retail investors participating in digital tokens backed by real estate or infrastructure projects. Formerly, retail investors were limited to investing 300,000 baht ($8,500) in these tokens. The updated rules, published in the Royal Gazette on January 16, eliminate this restriction, offering retail investors greater flexibility in engaging with the real estate and infrastructure-backed digital token (REIT) market.
The decision by the Thai SEC to lift investment restrictions aligns with the country's burgeoning cryptocurrency market. In September 2023, Thailand's largest bank, KBank, acquired the cryptocurrency exchange Satang, indicating an increasing acceptance of digital assets within the country's financial system. The regulatory adjustments also permit the establishment of locally hosted wallets, secure digital storage solutions for holding digital assets. Custody wallets can operate in Thailand if operated by a listed company with experience in digital asset storage. The SEC will issue licenses to digital asset service providers (DASPs) to initiate operations in new business lines.
The move to relax regulations on digital tokens coincides 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 his own digital token, the SiriHub Token. In addition to the regulatory changes, the Thai government announced plans to distribute 10,000 baht ($274) to citizens aged 16 and older through a network of digital wallets. The initiative, aimed at stimulating the economy and promoting digital literacy, has faced delays since Taweesin's election.
