Thai SEC Allows Firms Dealing With Digital Assets By Calculating Their Net Capital Funds
Thai SEC Allows Firms Dealing With Digital Assets By Calculating Their Net Capital Funds
November 20, 2020
Thai SEC Allows Firms Dealing With Digital Assets By Calculating Their Net Capital Funds
Thai SEC Allows Firms Dealing With Digital Assets By Calculating Their Net Capital Funds
November 20, 2020

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. 

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.

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

Source: Cointelegraph | Image: International Investment


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.