Thailand has launched a regulatory “sandbox” to test and develop crypto-related services, aiming to advance the sector. This initiative, approved by the Thai Securities and Exchange Commission (SEC), involves exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers.
Participants in the sandbox must first apply to the program, where the regulator will assess their qualifications and financial stability. This ensures that only those with the necessary expertise and capital can partake in the testing phase.
The sandbox will allow various services to be tested. Exchanges will serve as trading platforms, brokers will facilitate transactions between buyers and sellers, dealers will handle retail sales, and investment firms will manage digital asset investments.
Advisors will provide expert guidance on crypto investments, while custodial wallet providers will focus on securing users’ assets. In each of these areas, participants must demonstrate their ability to meet regulatory standards and protect clients. Only after successful testing will they be allowed to integrate into the broader market.
The sandbox is set to operate for one year, with a possible extension if necessary. This project is crucial not only for crypto companies but also for the Thai authorities, who are actively pursuing initiatives to integrate digital assets into the economy. For instance, in early June, the Thai SEC approved the country’s first spot Bitcoin ETF.