Cabinet Approves Digital Asset Amendments, Opens Door to 100% Electronic Capital Raising

Strategic Insights -

The Thai Cabinet has greenlit amendments to the Securities and Exchange Act, paving the way for 100% electronic capital raising, equity instruments, and debt instruments. The move aims to promote fundraising, leveraging digital assets, and facilitating a seamless electronic process in the capital market. Associate Professor Dr. Pornanong Busaratrakul, Secretary-General of the SEC, emphasized that the amendments aim to ease transfer of money in the secondary market, increase liquidity in the money and capital markets, and support the issuance of securities electronically.

Key Takeaways:

  • The Cabinet approved amendments to the Securities and Exchange Act, supporting digital assets, and specifically G-Token, for 100% electronic capital raising, equity instruments, and debt instruments.
  • The amendments propose setting fees for business operations, increasing provisions for fines, and enhancing witness protection measures during inspections and evidence collection.
  • The plan includes implementing secondary legislation, such as the draft Futures Contracts Act, the draft Trust for Transactions in the Capital Market Act, and the draft Act to Amend the Digital Asset Business Act.
  • The National Broadcasting and Telecommunications Commission (NBTC) plans to raise funds using G-Token to compensate for the 2025 budget deficit.
  • Retail investors will be able to access fundraising, equity instruments, and debt instruments 100% electronically, reducing costs and promoting document-free operations.
  • The SEC Office will issue an announcement as subsidiary law once the Digital Asset Act is approved by the House.
  • The amendments are seen as a comprehensive infrastructure development, creating more liquidity in the money and capital markets, and supporting entrepreneurs in all areas.
  • The Cabinet's move is considered a starting point for the issuance of securities electronically, 100%.

Statistics:

  • 5,000 million baht: the 2025 budget deficit compensated for by the NBTC through the use of G-Token.
  • 100%: the electronic capital raising, equity instruments, and debt instruments that will be facilitated by the amendments.
  • 4: the total number of issues proposed by the Ministry of Finance, including the Securities and Exchange Act amendments and secondary legislation.
  • 1: the total number of ways the amendments aim to improve the capital market, including increased liquidity, reduced costs, and ease of access for retail investors.