Thailand’s Securities and Exchange Commission (SEC) has launched a public consultation on a proposed regulatory overhaul that would allow licensed cryptocurrency exchanges and their affiliated entities to issue and list their own utility tokens—a move that could reshape the country’s digital asset ecosystem and bolster its ambitions to become Southeast Asia’s crypto innovation hub.

Proposal Details: Unlocking Token Issuance for Exchanges

Under the new framework, Thai-licensed crypto exchanges would be permitted to develop, issue, and list utility tokens that serve functional purposes within their platforms. These tokens might be used for trading fee discounts, staking, loyalty rewards, or other user services native to the issuing exchange’s ecosystem.

Key features of the proposal include:

• Mandatory transparency and disclosure: Exchanges must disclose any associations—direct or indirect—with the issuers of listed tokens.

• Real-time alert system: An automated monitoring system will flag such affiliations on the SEC’s public dashboard.

• Implementation timeline:

  • For existing tokens: 90 days will be provided post-implementation for issuers to disclose affiliations.

  • For newly listed tokens: Affiliations must be declared in advance.

The public consultation is open until July 21, 2025, giving stakeholders—including investors, exchanges, and legal experts—an opportunity to provide feedback before the regulations are finalized.

Why It Matters: Innovation Meets Oversight

This proposed change represents a strategic balancing act: enabling financial innovation while preserving investor protection and regulatory oversight.

Opportunities:

• Platform differentiation: Exchanges could develop bespoke token utilities tailored to their users—encouraging adoption and platform loyalty.

• Revenue generation: Utility tokens could serve as fundraising tools or be used to bootstrap new services.

• Regulatory clarity: By formalizing the process, the SEC would eliminate grey areas around token issuance and potential conflicts of interest.

Risks:

• Conflicts of interest: Exchanges may prioritize promoting their own tokens over others, creating a biased market environment.

• Market manipulation: Without safeguards, the misuse of inside information related to token listings or exchange activities could harm retail investors.

• Compliance burden: Exchanges must invest in systems and legal support to meet disclosure requirements and risk penalties for non-compliance.

Backdrop: Thailand’s Wider Crypto Strategy

The move is part of a broader shift in Thailand’s digital asset regulation. Earlier in 2025, the Thai government implemented a five-year tax exemption on capital gains from crypto trading (from Jan 1, 2025, to Dec 31, 2029) and introduced policies to facilitate crypto spending by tourists. At the same time, the SEC cracked down on unlicensed platforms, banning access to global exchanges like Bybit and OKX effective June 28, 2025.

Thailand is attempting to become a regulated-yet-competitive hub for blockchain and digital asset innovation, offering certainty for investors and entrepreneurs while maintaining market integrity.

Next Steps

• Public Consultation: Input can be submitted to the SEC up until July 21.

• Final Rulemaking: After reviewing feedback, the SEC will release a final version of the rules.

• Enforcement and Implementation: Exchanges will be required to comply with disclosure protocols and integrate with the SEC’s monitoring systems.

Thailand’s push to allow crypto exchanges to issue their own utility tokens marks a significant shift in policy—one that signals both regulatory maturity and openness to innovation. If passed, the new rules could enable exchanges to diversify their offerings, build deeper user engagement, and compete more effectively on a global scale—all under the watchful eye of the country’s increasingly sophisticated regulatory apparatus.

The consultation process will be key in shaping how the final rules balance flexibility, market stability, and user protection—and it’s likely that the global crypto community will be watching closely.