The Securities Exchange Commission of Thailand has announced new rules that will allow digital currency businesses to take advantage of crypto assets to determine net capital funds, in a move expected to increase liquidity in the sector. The regulator announced that firms will now be able to factor in any crypto asset holdings following a surge of activity on local exchanges. The new rules have been introduced to support the increase in trading volumes by allowing brokers more flexibility with managing their liquidity.
New regulations would allow for a deduction based on the quality of the assets held by the firm.
According to The Bangkok Post report, the measures also allow for a deduction based on the quality of the assets held by the firm. The new regulations state, “the maximum amount calculable for digital assets to a firm’s [net capital] is 50% of the asset value.” Companies operating crypto assets services will now be required to maintain at least 1% of digital assets in cold wallets, with at least 5% required to be held in online storage or hot wallets.
Thailand supports the cryptocurrency industry with new regulations.
The new regulations come as the latest in a succession of steps taken by the country’s regulator to support its increasing domestic digital currency industry. Earlier this year, the Thailand SEC announced it had granted four provisional licenses to South Korean digital currency giants UpBit, giving the firm the necessary permissions to trade in Thailand. In 2019, the Thai regulator also approved SE Digital, a subsidiary of Seamico Securities, which became the first ICO portal licensed to trade. The new regulations come at a time of increasing interest in cryptocurrency and digital assets in Thailand and throughout the wider region.