Thailand SEC Proposes Streamlined Crypto Knowledge Test Rules

  • Thailand‘s SEC proposes easing knowledge test rules for crypto investors.
  • Retail investors who have already passed the knowledge test would not need to retake it every three months.
  • New suitability tests for all digital token investors would be required and reviewed every two years.
  • The new regulations aim to reduce administrative burdens while maintaining investor protection standards.
  • Public feedback on the proposal is open until August 1, with potential changes to how ICOs are accessed in Thailand.

The Thai Securities and Exchange Commission (SEC) is seeking public input on proposed changes to the rules for crypto investors. The new guidelines would relax the current requirement for retail investors to re-take a knowledge test every three months before participating in initial coin offerings (ICOs), allowing those who have already passed to skip repeat tests.

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According to an official announcement from the Thai SEC, these updated rules would introduce a mandatory suitability test for all digital token investors. This test, which checks whether the investor’s risk tolerance matches the risk of the product, would be reviewed at least every two years, replacing the current quarterly reassessment schedule.

The SEC stated, “This proposal aims to reduce the burden on both ICO portals and investors by canceling the requirement for such assessment every three months.” The agency noted that the planned changes are designed to align with existing practices for securities and digital assets oversight. Under the new proposal, non-institutional investors must pass the knowledge test only once, while professional and high-net-worth investors would remain exempt.

Jagdish Pandya, founder of Blockon Ventures, commented to Decrypt that the proposed requirements would help prevent inexperienced investors from repeating mistakes seen in earlier ICO markets. He added, “Their ICO portal enables raising funds, which is again a benchmark ahead of its time compared to UAE or Hong Kong too.”

The SEC’s initiative is part of broader regulatory efforts, which also include a June consultation on allowing crypto exchanges to list self-issued tokens with stricter disclosure requirements to fight insider trading. Thailand is also preparing pilot programs for crypto-based tourism payments in destinations like Phuket and is reviewing retail access to spot Bitcoin exchange-traded funds.

Investors and other stakeholders can submit comments until August 1. For additional information, see the SEC’s official announcement.

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