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Thailand’s Securities and Exchange Commission (SEC) has opened a public consultation to gather feedback on proposed regulations that would permit cryptocurrency exchanges—and individuals affiliated with them—to issue utility tokens under specific conditions.
Announced on Friday, the draft framework forms part of Thailand’s broader initiative to strengthen oversight of the digital asset market while fostering responsible innovation. A key provision of the proposal requires exchanges to disclose the identities of individuals linked to any token issuance. According to the SEC, this measure is intended to enhance transparency and help regulators monitor for insider trading and other forms of market abuse.
The consultation period arrives at a time when Thai authorities are stepping up efforts to define a comprehensive regulatory architecture for the crypto industry. In recent months, Thailand has implemented a series of crypto-related policies, balancing investor protection with the promotion of digital asset adoption.
In May, the country announced plans to allow tourists to spend cryptocurrencies via credit cards. However, the same month, authorities took enforcement action by blocking access to prominent global exchanges OKX and Bybit, citing concerns over unlicensed operations and inadequate anti-money laundering controls. In June, Thailand also introduced a waiver on capital gains taxes for crypto transactions conducted through licensed digital asset platforms.
Thailand’s urgency in tightening its regulatory framework stems in part from past incidents. In 2022, a high-profile insider trading case involving the former chief technology officer of Bitkub, one of the country’s largest exchanges, revealed the vulnerabilities in the absence of robust oversight. The official was accused of trading tokens using privileged information prior to a major corporate announcement.
The proposed token issuance rules appear designed to prevent such occurrences in the future by ensuring greater accountability for market participants with insider access.
Global Context: Rising Scrutiny of Insider Trading in Crypto
Insider trading in the cryptocurrency sector continues to draw global regulatory attention. High-profile cases in the U.S. include the conviction of former OpenSea employee Nate Chastain, who was sentenced in 2023 for leveraging internal knowledge to purchase NFTs ahead of public listings. Similarly, in 2022, three Coinbase employees were charged in what was described as the first insider trading case involving digital assets in the United States.
Even major platforms have not been immune to scrutiny. Binance suspended an employee earlier this year following internal investigations into suspicious trading activity. Most recently, questions were raised about alleged insider behavior surrounding the Official Trump (TRUMP) memecoin after blockchain analysts flagged anomalous activity tied to a whale wallet.
Next Steps for Thailand
Thailand’s SEC is inviting stakeholders—including crypto exchanges, developers, legal experts, and the public—to submit comments during the consultation period. The final rules are expected to reflect a balance between enabling innovation and ensuring the integrity of the Thai digital asset market.
Once finalized, the new regulations will reinforce Thailand’s commitment to creating a transparent, secure, and investor-friendly environment for the growth of blockchain-based financial services.
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