Thailand SEC launches a blockchain-based trading platform for digital tokens, enhancing market efficiency, liquidity, and accessibility for securities firms.
The Securities and Exchange Commission (SEC) of Thailand is planning to launch a distributed ledger technology (DLT)-based trading platform for securities firms. Companies can trade digital tokens through this new platform. According to the Bangkok Post, SEC deputy secretary-general Jomkwan Kongsakul says that token investments increasingly appeal to investors. The regulator plans to permit securities firms to exchange digital tokens by seizing the growing market trends.
The organization seeks to create additional investment chances through this platform while benefiting from substantial investor participation. The Securities and Exchange Commission (SEC) has given authorization to four digital token projects and reviews another two ongoing propositions. The approved digital token projects concentrate on both green token solutions and investment-based initiatives.
The SEC works to enhance the capital market by implementing electronic securities. The future regulatory framework will incorporate procedures to both create electronic securities and establish Internet-based bond transactions. Buying bonds from the primary market currently takes seven to fourteen days until trading becomes available. The time delay stops investors from gaining access and weakening market liquidity.
Thailand SEC Introduces DLT to Improve Market Efficiency
Thai SEC strives to bring contemporary methods into bond trading activities. A large number of security issuers continue to work with traditional paper-based methods which produces processing delays together with mistakes. High-tech solutions will speed up and enhance transaction precision when integrated into capital market operations thus minimizing market obstacles.
The SEC aims to complete the process of digitizing bond trading operations within primary market and secondary market settings. The system includes four major features which include settlements, trading, investor registration and return payment functionality. The SEC maintains that market competition will stay open and accessible. Businesses with their own decentralized ledger technology infrastructure can construct independent blockchains as long as they preserve standard-interoperability with other platforms.
The SEC plans to give affordable access to a public blockchain for organizations that do not operate their own blockchain system. Several DLT-based trading systems will exist in parallel operations in upcoming years. All these systems will operate with one interconnected ledger to achieve transaction efficiency.
Regulatory authorities expect their blockchain trading system to enhance the digital securities market through effective operations while creating transparent processes and broader market accessibility in Thailand.
