- Thai SEC has revised its net capital laws regarding digital asset firms.
- The decision comes following rise in trade volume on the Stock Exchange of Thailand
- Firms carrying crypto can now add up to 50 percent of the assets value when calculating their NC.
The Thai Securities and exchange commission has revised its net capital (NC) laws concerning the digital assets industry.
According to a Thai news outlet, the SEC revised the NC rules following a sharp surge in the trading volume of Thai state exchange. The revised rules now enable firms interacting with digital assets to include the value of these assets when calculating their new capital funds.
Rising trade volume
According to a report by The Bangkok Post, the Thai SEC revised its NC rules following a surge in the trade volumes at the Stock Exchange of Thailand (SET). The SEC and the Thailand Futures Exchange (TFEX) saw a surge in their trading volumes following the US presidential elections. The SET trading volume for 24-hour rose to 166 billion baht while the TFEX volume surpassed one million daily.
Thai SEC revises NC rules
The new rules introduced by the Thai SEC aim to support the growing digital asset industry by allowing brokers to increase their liquidity management. The new regulations enable firms and businesses carrying digital assets to include them in their NC calculations. However, the firms are required to deduct a percentage of the asset’s value depending on its quality, with the maximum amount calculable being 50 percent of the asset’s value.
Firms providing services and storage for digital assets are now required to maintain more than one percent of the cold wallet’s funds and five percent of the customers’ funds on another system, such as a hot wallet. In cases of the firm not providing cryptocurrency storage, the regulation requires shareholder’s equity to be more than half a million baht.
Thailand has taken significant measures to promote the growth of the digital asset industry and is also interested in launching a central bank digital currency (CBDC). Local sources have reported that the bank is already using its digital baht to facilitate transactions with selected businesses.