The Stock Exchange of Thailand (SET) could become the latest entity to obtain a cryptocurrency trading license in the country. This news comes as the bourse is reportedly mulling to become a licensed digital asset trading platform.
SET Eyes Digital Asset License to Trade Cryptocurrency
According to the Bangkok Post, the SET plans to apply to the Thai Finance Ministry, to obtain a digital asset operating license. If granted, the stock exchange could establish its cryptocurrency trading platform.
Reports indicate that the bourse is looking at beginning crypto exchange operations before the end of 2019. For Pattera Dilokrungthirapop, the vice-chair of the SET’s board of governors, the need to become involved in the emerging digital economy is the main reason for the move.
According to Dilokrungthirapop, many companies listed on the SET are already pursuing licenses to become cryptocurrency broker-dealers. Thus, the SET plans to liaise with its member companies to work out modalities for the proposed cryptocurrency exchange platform.
Dilokrungthirapop, who is also the chair of the Association of Securities Companies, says the SET isn’t in a hurry to move ahead with its plans. Commenting on the matter, she explained:
We [the SET] are not in a hurry to enter the digital asset trade, as some companies are still managing their core businesses, while cryptocurrencies are just one of the [digital] asset classes. Securities firms are currently waiting for the SET to apply for a license. For us, digital assets are expected to grow in the future as investors gain more understanding of this asset class.
Thailand’s Growing Digital Economy
The SET’s plan to operate a licensed cryptocurrency exchange platform is yet another example of Thailand’s growing digital economy. Beginning in mid-2018, the government via its Finance Ministry and the Securities and Exchange Commission began creating a legal framework for the digital asset industry.
For Dilokrungthirapop, the SET stands a good chance of obtaining the license based on its significant capital pool and status as a trusted exchange operator. Jirayut Srupsrisopa, the CEO of Bitkub Group, agrees with Dilokrungthirapop but highlight’s the SET’s lack of experience in the cryptocurrency arena.
Bitkub is one of the four platforms that recently obtained licenses from the Thai SEC to become regulated cryptocurrency exchanges. According to Srupsrisopa, there are also plans of a possible partnership between Bitkub and the SET.
Do you think stock exchange operators coming into the cryptocurrency trading arena is good for the industry? Let us know your thoughts in the comments below.
Image courtesy of Shutterstock