Thailand updates legal framework to modernise capital markets
Proposed reforms would allow securities to be issued, transferred and used as collateral through legally recognised digital systems.
Thailand is advancing amendments to the Securities and Exchange Act to create a legal framework for electronic securities and support the digitalisation of its capital markets.
The draft bill has passed its first reading in the House of Representatives, with a special committee appointed to review the details before the second and third readings. The proposal would allow securities to be issued, held, transferred and used as collateral in electronic form with legal effect.
Government officials said the reform is intended to improve access to capital, reduce transaction costs and make capital market processes more efficient. The initiative forms part of Thailand’s broader effort to modernise financial infrastructure and support the digital economy.
The framework would apply to existing capital market instruments, including shares, bonds and investment units. Authorities have presented the measure as a way to digitise securities processes under a clearer legal and regulatory framework, rather than as a move to create a new category of unregulated digital assets.
The proposal also includes safeguards for investors and market integrity, including rules on securities registries, client assets and regulatory oversight of electronic securities transactions.
Why does it matter?
The reform shows how digital finance policy is moving beyond cryptocurrencies and payment systems into the core infrastructure of capital markets. By giving electronic securities legal effect, Thailand could reduce paperwork, lower transaction costs, and make fundraising more efficient. The practical impact will depend on the final text, regulatory implementation and whether market participants adopt the new digital processes at scale.
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