Deputy Secretary General Of Thailand SEC Is Looking To Leverage DLT Technologies To Change The Face Of Country’s Trading System

Blockchain technology is one of the most prominent technological inventions of recent times. The technology has singlehandedly changed the shape of the digital essence of the business. Every business sector has implemented this technology to grow and streamline things.

As a result, many countries like Australia, Canada, and America are looking to leverage the technology for their gain. However, Thailand has gradually become a leading name in the industry. It was one of the first-ever Asian countries to regulate crypto to avert the infamous collapse of the South Korean crypto market.

Recently, the Thailand government has been looking to broaden its horizon and release a DLT-based debt instrument trading system. This could prove to be a new dawn for the blockchain industry in Thailand.

Understanding DLT 

Thailand SEC, or the Securities and Exchange Commission embraces blockchain to further its innovative stance in the blockchain world. But first, we need to understand what DLT is and how it functions. 

Distributed ledger technology, or DLT, is an advanced technological infrastructure that allows simultaneous access, record updation, and validation of data stored in a network database.

DLT allows organizations or individuals to store data accurately across network arrays with the help of cryptography. This stored data can only be accessed via cryptography keys. As a result, the data stored in DLT formats will remain safe, immutable, and secure.

Moreover, DLTs are decentralized and encrypted. This reduces the chance of it being breached. This makes them perfect for storing sensitive data. If someone does try to breach, they will have to breach all data points simultaneously to be successful.

Thailand SEC Looking To Implement DLT 

Given the nature of DLT, it is no wonder why the Thai government is looking to implement a DLT-based debt instrument trading system. As per the officials, this move is all set to attract or convince security firms to participate in digital asset trading.

Jomkwan Kongsakul, deputy manager of SEC, has officially stated that she and his team have approved four digital asset projects and are looking to implement two more.

In a press release, the SEC deputy secretary general said, “The SEC is leveraging technology to enhance efficiency in the capital market by promoting an electronic securities ecosystem. In the future, new regulations will be launched to facilitate the issuance of electronic securities and online purchases of debentures.” 

Therefore, some might even say that the SEC wants to digitize the complete trading landscape. She even said organizations have the free rein to develop their own DLTs. As long as these are ‘interoperable.’

The End: Is It Built For The Future? 

This move by the Thai government is a testament to the country’s stance towards digitization and blockchain technology.

This new move could change the very face of the traditional bond trading ecosystem as it can streamline some of the persistent issues that plague this sector.

However, the technology is still in its infancy. Therefore, it is best to wait and see what the future has in store for Thailand’s blockchain landscape.