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Thai SEC Allows Firms Dealing With Digital Assets By Calculating Their Net Capital Funds

Thailand’s Securities and Exchange Commission (Thai SEC) now allows firms dealing with digital assets to include the value of those assets when calculating their net capital funds. 

It has been reported by The Bangkok Post that the new rules follow a surge in volume on Thai exchanges.

However, after the United States presidential election, the Stock Exchange of Thailand saw a one-day trading value hit $5.5 billion while futures contracts on the Thailand Futures Exchanges increased to 1 million per day. 

The new rules aim to support the rising trading volumes by allowing securities and derivatives brokers to increase their liquidity management. 

Thailand’s SEC revises its net capital rules to accommodate if for #crypto trading by local securities firms — Cointelegraph (@Cointelegraph) November 18, 2020

The Bangkok Post stated that the new regulations include a deduction based on the quality of the assets. 

The report noted:

“The maximum amount calculable for digital assets to a firm’s [net capital] is 50% of the asset value.”

Likewise, the SEC also requires securities companies operating digital asset services to maintain more than 1% of customer digital assets in the cold wallets, and more than 5% of assets in online storage systems like hot wallets.

Thus, the Thai government has been amending local regulations in order to support the growing domestic crypto industry.



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