Thailand’s Securities and Exchange Commission (SEC) is taking a significant step toward digital asset innovation by proposing new rules that would allow crypto exchanges to issue their own utility tokens, while enhancing transparency and oversight.
A Regulatory Shift to Encourage Innovation
In a recent announcement, the Thai SEC launched a public consultation on a draft framework designed to enable exchanges—or related parties—to issue utility tokens used for blockchain transactions. The move signals Thailand’s ongoing efforts to foster innovation while mitigating risks like insider trading and illicit activity.
The proposal states that exchanges must disclose the names of individuals or entities involved in token issuance, allowing the SEC to monitor market activity and enforce compliance.
This change could create new revenue models for local platforms while increasing token-based services across Thailand’s growing blockchain ecosystem.
Balancing Oversight With Access
The SEC emphasized that the goal is to maintain a balanced regulatory environment—promoting blockchain adoption while staying vigilant against misuse. This proposal arrives amid broader regulatory action.
In May 2025, Thailand’s SEC ordered access restrictions to exchanges such as Bybit and OKX, citing non-compliance with the Digital Asset Business Act. It was a stark reminder of Thailand’s strict enforcement stance on unauthorized activity.
However, Thailand has shown openness where clarity exists. In March, the SEC approved the trading of stablecoins like Tether (USDT) and Circle’s USD Coin (USDC)—joining the previously allowed set of tokens including Bitcoin (BTC), Ethereum (ETH), XRP, and Stellar (XLM).
Utility Token Issuance Rules Open for Public Feedback
Stakeholders and the public have until July 21, 2025, to submit comments on the proposed utility token rules. The SEC seeks input on key areas including:
- Disclosure requirements
- Monitoring tools
- Exchange accountability
- Token structure and use cases
This inclusive consultation reflects a regulatory approach aimed at collaboration, ensuring that the rules accommodate both investor protection and innovation.
Conclusion: A Step Forward for Thailand’s Crypto Ecosystem
The proposal to allow utility token issuance by exchanges is a major development in Thailand’s crypto regulatory landscape. If passed, it could position the country as a digital asset leader in Southeast Asia, offering greater flexibility for platforms and more diverse token services for users.
As global regulatory frameworks evolve, Thailand’s move may serve as a model for balanced crypto governance — combining innovation, security, and accountability.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.