On June 1, 2024, Thailand’s Securities and Exchange Commission (SEC) issued four notifications amending existing regulations to recognize sustainability-related tokens and institute specific measures for regulating them. These tokens are intended to offer diverse sustainability-related products to ESG funds in Thailand and drive the growth of a sustainable digital economy in the country.
The key points in the notifications are summarized below.
Definitions
Under the notifications, sustainability-related tokens are classified into four types:
The offering of sustainability-related tokens is subject to Thailand’s general requirements for token offerings: (1) approval from the SEC and (2) filing the registration statements and the draft prospectus with the SEC before marketing and offering the sustainability-related tokens to public investors in Thailand, unless exempted. The sustainability-related tokens must be offered through an SEC-approved ICO portal, which will assume a role similar to that of a financial adviser and an underwriter in a public offering of securities.
Sustainability-Related Token Offerings
In addition to complying with the general requirements for token offerings, sustainability-related token offerings must comply with the following measures:
Fee Exemption
From June 1, 2024, until May 31, 2028, issuers of sustainability-related tokens are exempt from paying the application fee, the fee for filing the sales offering statement, and the fee for filing the draft prospectus for sustainability-related tokens.
For more information on these sustainability-related token notifications, or on any aspect of digital assets and cryptocurrency in Thailand, please contact Kobkit Thienpreecha at [email protected], Pornpan Wichawut at [email protected], Napassorn Lertussavavivat at [email protected], or Rujaporn Paritsantik at [email protected].