The Securities and Exchange Commission (SEC) of Thailand is launching a new crypto asset regulatory sandbox to test its digital asset-related services.
In a new announcement, the securities regulator says it’s launching the sandbox – a controlled environment set up by regulators where companies can test their services and products – as a means of bolstering safety and innovation within the crypto industry.
“The Securities and Exchange Commission (SEC) is introducing the Digital Asset Regulatory Sandbox to facilitate experiments and the development of innovations supporting the efficient provision of digital asset services in the real-life context.
Interested parties are welcome to participate in the sandbox to test their digital assets-related services, promoting innovative development in the capital market under a framework of flexible regulation.”
The Thai SEC first passed the resolution to create the sandbox earlier this year in March. In May, the regulatory body held a public meeting on the matter and learned that most respondents agreed with the proposed guidelines of the sandbox.
The sectors of the industry allowed to participate in the sandbox include crypto exchange platforms and brokers, crypto wallets, digital asset fund managers, as well as crypto dealers.
According to the announcement, participation time in the sandbox will be limited and specific. However, users may request an extension for their testing period.
“The participants must specify the specific scope of services for the sandbox to reduce risks and widespread impacts that may occur during the sandbox period of no longer than one year as from the approval date.
Nevertheless, upon expiration of the Sandbox period, the participants may request an extension for their service testing period.”