Thailand’s SEC seeks to update rules regarding utility tokens

Thailand’s Securities and Exchange Commission (SEC) has opened a feedback consultation period on the rules that will allow exchanges or individuals to contact the exchange to issue utility tokens, according to a statement on Friday.

Under the proposed rules, the communication will have to disclose the names of anyone associated with the token issuer, which will help the SEC monitor the signs of internal transactions. The plan is part of Thailand’s efforts to establish a regulatory framework for the cryptocurrency industry.

https://www.youtube.com/watch?v=wjs2kxhdexg

The country’s plan announced in May allows visitors to spend cryptocurrencies through credit cards, and after just a few days, it focused on concerns about driving-free operations and money laundering, preventing Crypto exchanges in the country OKX and BYBIT. A month later, it announced a capital gains tax exemption for cryptocurrency sales conducted by licensed crypto service providers.

Thailand is home to the 2022 cryptocurrency internal trade scandal. In August of that year, the SEC said Bitkub’s CTO was one of the biggest exchanges in the country, using internal information to buy certain tokens before buying a big deal.

Related: Kucoin extends to Thailand through SEC-approved exchange

Crypto Trading in Insider Trading

Insider trading is the act of purchasing or selling security based on private non-public information. In many jurisdictions, this practice is considered illegal, but the exact rules depend on regulators, such as a country’s corresponding securities and trading commissions.

In the cryptocurrency market industry, there are several suspected insider trading.

In 2021, Opensea employee Nate Chastain was accused of using internal knowledge to purchase NFTs that will appear on the Opensea homepage soon. Chastain was convicted in 2023 for wire fraud and money laundering and sentenced to three months in prison.

In 2022, three Coinbase employees were charged with insider trading. Two of them were sentenced to prison.

Recently, Binance suspended a staff member in March after an investigation into so-called insider trading. After blockchain analytics companies analysed the abnormal behavior of Whale Wallet, internal trade charges were also filed around Trump (Trump), a memorial official of U.S. President Donald Trump.

Magazine: Trump’s cryptocurrency business sparks conflict of interest, insider trading issues