Thailand's SET plans to launch a digital asset platform in the second half of this year, but will not include cryptocurrency

This article is an original piece by Chain Catcher, authored by Echo.

1. SET Proposes Three Standards for Digital Token Assets

According to the Bangkok Post report on January 20, the Stock Exchange of Thailand (SET) plans to launch a digital asset trading platform in the second half of 2021, but it will not include cryptocurrencies.
As explained by SET's Executive Vice President Kitti Sutthiatthasil, cryptocurrencies are just one type of digital token asset, which can include many valuable items such as diamonds and property deeds.
The exchange also announced three standards for digital token assets. First, the token must have an underlying asset that investors can analyze for value; second, it must be a valuable product that supports economic activities; third, the product must benefit both society and the environment.
"Digital assets must meet at least one of the three conditions set by SET, but cryptocurrencies do not meet any of them. Therefore, even if some countries accept cryptocurrency payments, they cannot be considered SET products," said Kitti Sutthiatthasil.
Kitti Sutthiatthasil also stated that cryptocurrencies do not qualify as their products, may facilitate money laundering, and could damage the exchange's image as a 'high-trust' exchange. Additionally, Thailand's economy is strong, with a low inflation rate and effective measures by the Bank of Thailand to maintain the stability of the Thai baht, so SET currently has no reason to support cryptocurrencies.

2. Shutdown of Thailand's Largest Cryptocurrency Exchange Bitkub

Recently, Thailand has been tightening regulations on exchanges. On January 19, under the order of the U.S. Securities and Exchange Commission (SEC), the Thai cryptocurrency exchange Bitkub Online temporarily shut down its trading platform, reopening its mobile application platform 16 hours later.
Bitkub CEO Jirayut Srupsrisopa stated that Bitkub holds a 90% market share and is Thailand's largest cryptocurrency exchange. The trading value on its platform surged from $60,000 to $100,000 daily to a peak of $3 million to $7 million per day. On January 7, the exchange reported that the total number of active trading accounts surged to about 800,000. However, according to anonymous sources, the actual number of Bitkub's active accounts is far lower than the company's claimed 300,000 to 400,000 accounts.
The SEC recently received complaints from investors stating that Bitkub's trading system was shut down on January 2, 3, and 16 due to increased trading volume at the exchange, coinciding with rising prices of Bitcoin and other cryptocurrencies.
On Monday, the SEC board passed a resolution under Article 35 of the 2018 Emergency Decree on Digital Asset Businesses, requiring Bitkub to submit a rectification plan to the SEC within five days and complete the resolution of the problematic work system. The rectification requires Bitkub to modify its trading system to ensure it can operate under high traffic conditions.
Previously, Thailand has been one of the countries in Asia that places the highest importance on digital assets, actively promoting the establishment of cryptocurrency regulations to standardize the cryptocurrency industry. In November 2020, Thailand revised two laws consecutively to adapt to the new developments in crypto assets. On November 13, the Thai SEC announced it would amend regulations on the issuance of digital tokens to promote the standardized development of securitized tokens. On November 16, the SEC announced revisions to the net liquid capital rules, allowing securities companies operating digital businesses to hold various forms of digital assets, such as cryptocurrencies and other digital assets.