Thailand’s Securities and Exchange Commission has revised the net asset rules for digital assets.
According to a report released Nov. 18 by The Bangkok Post, the Thai SEC now allows digital asset companies to include the value of those assets when calculating Net Capital Funds.
The new rules follow the increase in volumes on the Thai stock exchanges. The Bangkok Post reported that after the US presidential election, the volume of one-day trading on the Thai stock exchange was $ 5.5 billion, and futures contracts on the Thai futures exchanges rose to $ 1 million a day.
The new rules are designed to support increased trading volumes by allowing stock and derivatives brokers to improve liquidity management.
As reported by The Bangkok Post, the new rules include a deduction based on asset quality. The report states that “the maximum amount that can be calculated for a company’s digital assets [net worth] is 50% of the asset value.”
The Securities and Exchange Commission also requires investment firms that provide digital asset services to maintain over 1% of a customer’s digital assets in cold wallets and over 5% of assets in online storage systems such as hot wallets.
The Thai government has amended local regulations to support the growing local crypto industry. In August 2020, the Thai SEC granted four temporary licenses to the South Korean stock exchange UpBit to enable the company to offer crypto services to customers in Thailand. Last year, the regulator approved SE Digital of Seamico Securities as the first primary gateway operator in Thailand.