The Securities and Exchange Commission of Thailand (SEC) is moving towards more crypto-friendly regulation, and has published a new framework earlier this month.

The Thai SEC regulates cryptocurrencies through the Digital Asset Businesses Decree. focuses on areas such as sales, trading, and initial coin offering (ICOs). The SEC said that digital asset businesses in Thailand must obtain licenses, and adhere to the rules outlined by the SEC in this decree.

The SEC’s updated framework eliminates the retail investor limits for tokens backed by assets, creates new custodian rules and gives it a greater role in monitoring the digital asset market.

Investment Limit Removed

The removal of the retail investment limit in digital tokens that are backed by infrastructure or real estate this month marks a major shift. Retail investors were previously limited to investing up to 300,000 baht ($8,400) in asset-backed ICOs.

This change will allow a wider range of investors to access the market and help the development of the digital asset market in the country.

The SEC’s update requires that custodial wallet management be managed by dedicated entities. These providers must, however, be subsidiaries of publically listed companies that have a proven track record for secure security storage.

Monitoring Business Expansion

New regulations require the SEC to be more involved in monitoring business expansion in the digital assets sector. The SEC must approve any expansion plans of firms that wish to grow.

The Bangkok Post reports that Thailand’s SEC decided not to allow exchange-traded bitcoin funds. South Korea, too, has decided not to allow such ETFs on its domestic market. An official of the South Korean Financial Services Commission told local media “the government has always maintained the principle that prohibits financial institutions from investing virtual assets to stabilize the financial markets and protect investors.”

This cautious approach is a result of the significant impact on the Korean market caused by the failures of Do Kwon’s cryptocurrencies in Korea, Luna and TerraUSD.

Binance Thailand’s launch in mid-January may also boost Thailand’s crypto growth. Binance TH offers digital asset trading in Thai baht, collaborates with local banks, and works with Binance Kazakhstan to provide brokerage services. All of this is regulated by Thailand’s SEC.

Read more: Asia is driving the next crypto bull market

Nikhilesh De, Amitoj Sing and Nikhilesh De edited the book.