Thailand’s Securities and Exchange Commission (SEC) has announced a consultation period for interested parties to provide feedback on new rules for utility token issuance.
Consultation on Utility Token Issuance Rules
The SEC proposed that exchanges disclose the names of individuals associated with token issuers. This will allow for more effective monitoring of potential insider trading. These measures are aimed at establishing a regulatory framework for the crypto industry in the country.
Previous Measures in the Crypto Industry
In May, it was announced that tourists would be allowed to use cryptocurrency for purchases via credit cards. However, shortly thereafter, Thai authorities blocked the operations of crypto exchanges OKX and Bybit over concerns about unlicensed activities and money laundering. A month later, it was revealed that capital gains tax on cryptocurrency sales through licensed services would be waived.
Insider Trading in the Crypto Industry
Thailand was involved in an insider trading scandal in 2022, when the SEC accused the CTO of Bitkub, a major crypto exchange, of using internal data to purchase tokens ahead of a major deal. Insider trading is considered illegal, and instances of such behavior in the crypto industry have attracted significant attention.
The SEC's plans to introduce new rules for utility tokens highlight Thailand's commitment to creating a more transparent and secure crypto industry, particularly following incidents involving insider trading.
