Thailand's financial regulatory body has initiated a public consultation to discuss potential rules governing the issuance of utility tokens by cryptocurrency exchanges. The proposed regulations would permit exchanges, or affiliated parties, to create and issue utility tokens for use in blockchain-based transactions, according to information posted on the regulator's website.
To prevent insider trading, exchanges will be required to disclose the identities of individuals related to token issuers, allowing the SEC to monitor their activities. This consultation is part of the regulator's efforts to balance innovation with the need to prevent illicit activities.
Earlier, in May, the regulator announced that it would block citizen access to certain cryptocurrency exchanges, including Bybit and OKX, effective June 28, citing non-compliance with the Digital Asset Business Act. In a separate development, the regulator expanded its list of approved tokens for trading on exchanges in March, adding Tether's USDT and Circle's USDC to the previously approved list of bitcoin, ether, XRP, stellar, and specific tokens used in the Bank of Thailand's settlement system. The SEC will accept public feedback on the proposed rules until July 21.