Thailand is finally moving forward with legalizing tokenized digital security assets as it endorses the amendment of the country’s security laws, according to Bangkok Post.

The National Legislative Assembly (NLA) is “paving the way for scripless securities issuance and tokenized securities leveraging blockchain technology,” says the post. This will invariably allow for stocks and bonds to be tokenized and traded on the blockchain thereby contributing to its development and by proxy, the adoption of cryptocurrency in the nation.

Optimism for the crypto industry continues to grow in Thailand, as this development is expected to build up the digital asset ecosystem, says SEC Deputy Secretary-General Tipsuda Thavaramara. Moreover, with more clarity from the SEC, it would be easy to determine what class of securities from the traditional sense has the potential for digitization and be offered as tokens.

The currently amended securities act, formerly allowed only Thailand Securities Depository LTD to be the sole company for scripless securities depository according to the set Stock Exchange of Thailand (SET) standards. The new adjustments allow other businesses operating depository of securities to extend their services to scripless securities. However, there would be a need for prospective operators to obtain a depository license from the regulator in order to issue their securitized assets to the public.

Security tokens are perceived to be one step higher than the regular utility tokens, being that they confer certain rights to holders, just like shares in a traditional stocks issuing company. Once operational, they could go as far as changing how traditional securities work in the capital market. It is expected that the amended security laws will take effect later this year. Last month, the Jamaica Stock Exchange (JSE) suggested that it will look at the possibility of listing security tokens on its platform after a successful trial with regulated market participants including the Jamaica Central Securities Depository (JCSD).

Thailand continues to develop its digital asset ecosystem by showing support for the emerging asset classes. More so, it has shown support for startups willing to set-shop in the jurisdiction as long as they comply with the regulatory standards being set. Earlier in January, the progressive efforts from the SEC and the ministry of finance saw four of seven crypto-related businesses operate in the region.