Thai SEC Revises net Capital Regulations to Help Free up Liquidity for Securities Firm

The Thai Securities and Exchange Commission (SEC) announced that it has revised net capital rules to bolster securities firms and derivatives brokers' liquidity management, support soaring trading of Thai bourses and accommodate digital asset trading.

According to a report from the Bangkok Post, SEC has revised its net capital (NC) rules which help securities companies provide crypto services.

"The revised NC rules are expected to help free up liquidity for securities firms that plan to enter new business such as open digital or cryptocurrency exchanges,” the publication conveyed, adding that some securities companies have consulted with the SEC to launch a cryptocurrency exchange.

Securities companies operating crypto businesses will be allowed to calculate the net capital funds with the value of these cryptocurrencies. “The maximum amount calculable for digital assets to a firm's NC is 50% of the asset value,” the publication noted. The new rules will also count crypto assets as capital funds.

For securities companies that operate crypto businesses and stores crypto assets for their customers, the rules require them “to maintain more than 1% of the cold wallet's capital funds (offline system) and 5% of the client's assets stored on another system (hot wallet or online system).” For crypto companies that do not provide crypto custody service, “the NC requires shareholders' equity to be over 500,000 baht.”