The national legislative assembly of Thailand has officially allowed the issuing of tokenized securities on a blockchain according to the local newspaper The Bangkok Post Friday, Feb. 22 2019.

The government will amend the Securities and Exchange Act, according to the article. As soon as the changes come into effect later in 2019, tokenized securities such as stocks and bonds can be officially issued on blockchain.

The Thai Ministry of Finance had decided to approve the business license applications for four crypto-related first that wished to issue digital assets, based on the Thailand SEC recommendation from the Board.

Though there were six applicants total, two of these applicants did not follow the clear rules issued by the SEC and were ultimately rejected.

The Thai Securities and Exchange Commission (Thailand SEC) will issue additional rules so that crypto platforms can seek a securities depository license.

According to Thailand SEC deputy secretary Tipsuda Thavaramara, the regulator will also allow businesses that operate as depositories of securities and digital tokens to apply for such licenses.

Previously, the aforementioned act defined Thailand Securities Depository Co Ltd, a subsidiary of the Stock Exchange of Thailand, as the only company permitted to operate as a securities depository for the SET’s securities trading operations.

The Thai SEC will also decide whether a security token offering is regulated under the current securities act or the royal decree on digital assets.

The decision will depend on the rights & obligations associated with a particular token, the publication notes.

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