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Thailand opens doors to retail investments in infrastructure-backed digital tokens

by SuperiorInvest

The Thai Securities and Exchange Commission (TSEC) has lifted restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects. Previously, retail investors were limited to investing a maximum of 300,000 baht ($8,500) in these types of tokens.

The updated rules, published in the Royal Gazette on January 16, 2024, remove this limit, allowing retail investors to invest more freely in the real estate and infrastructure-backed digital token (REIT) market.

The TSEC’s decision to lift the investment limit comes as the country’s cryptocurrency market is gaining momentum. In September 2023, Thailand’s largest bank, KBank, acquired cryptocurrency exchange business Satang, signaling the growing acceptance of digital assets in the Thai financial system.

The new rules also allow the creation of local custodial wallets, which are secure digital storage solutions for storing digital assets. Custodial wallets can operate in Thailand if they are operated by listed companies with experience in storing digital assets. The TSEC will also be responsible for issuing permits to digital asset service providers (DASPs) to start operations in new lines of business.

Related: Thailand’s KBank Acquires Satang Cryptocurrency Exchange Business

The government’s decision 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, former CEO of Sansiri, one of Thailand’s largest property developers, is an active investor in digital assets. and he has his own digital token called SiriHub Token.

In addition to the regulatory changes, the Thai government has also announced plans to distribute 10,000 baht ($274) to citizens over the age of 16 through a network of digital wallets. This initiative, aimed at boosting the economy and promoting digital literacy, has been delayed twice since Thavisin’s election.

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