Thailand's Securities and Exchange Commission (SEC) has announced the removal of investment restrictions on retail investors who engage in real estate-based digital tokens. The regulatory update, effective since January 16, comes after a public consultation period and underscores the Thai SEC's commitment to adapting to the landscape of digital assets.

Unleashing Retail Investors into Real Estate-Based Digital Tokens

The Thai SEC revealed on January 18 that its committee had revised the criteria for investing in digital tokens to provide investors with protection measures. Notably, retail investors are no longer bound by previous limitations when purchasing real estate-based digital tokens. The move is expected to stimulate investment in this sector and aligns with the regulator's goal of striking a balance between investor safeguarding and encouraging financial innovation.

Previously, retail investors were restricted to an investment cap of $8,430 (300,000 baht). However, with the recent changes, investors can now explore opportunities in digital tokens linked to real estate assets or infrastructure without these financial constraints.

To ensure responsible expansion within the digital asset space, the Thai SEC emphasized that entities seeking to diversify into other businesses need to obtain prior approval. This measure is designed to maintain oversight and prevent potential risks to investors.

"Thai SEC removes investment restrictions on real estate-based digital tokens, benefiting retail investors. The move aims to protect investors while promoting innovation, effective Jan. 16. Read more: https://t.co/iRcq0NPqe5"

— Bony Bean (@bonybean) January 19, 2024

Calls for Adherence from Digital Asset Service Providers

The regulatory update followed a period of public consultation initiated by the SEC, during which stakeholders had the opportunity to comment on the draft proposals introduced on September 23. The regulator reported that the majority of respondents endorsed the principles outlined in the draft, affirming a general alignment with the regulatory direction.

Beyond addressing investment restrictions, the updated criteria touched upon the establishment of custodial wallet provider businesses. Digital asset entities seeking diversification are now required to obtain approval from the SEC, reinforcing the regulator's commitment to upholding legal standards within the crypto market.

In a statement, the Thai SEC urged all digital asset service providers to operate within the confines of the law, emphasizing the importance of enhancing the overall quality and reliability of the Thai crypto market.