Thailand Securities and Exchange Commission (SEC) has launched a public consultation on a new set of rules aimed at regulating the issuance of utility tokens by crypto exchanges and their affiliates. Announced on Friday, the proposal seeks to increase transparency and minimize the risk of insider trading, a concern that has loomed over the country’s crypto industry following previous scandals. Under the draft regulations, any crypto exchange or individual connected to an exchange that issues utility tokens would be required to disclose all associated parties. This information would help regulators monitor unusual trading activity and potential misuse of privileged information. The initiative is part of a broader effort by Thai authorities to strengthen oversight in the rapidly growing crypto sector. Responsible Growth in the Crypto Space Thailand has been taking significant steps in recent months to balance innovation in the digital asset sector with investor protection and financial integrity. In May, the government announced plans to allow tourists to use cryptocurrency via credit cards . However, just days later, it cracked down on major exchanges OKX and Bybit, citing concerns over unlicensed operations and potential money laundering risks. In June, the country also waived capital gains taxes on crypto trades made through licensed platforms, signaling a willingness to support legal and compliant market growth. The latest SEC proposal adds another layer of structure, specifically targeting transparency in token issuance and the prevention of insider trading. The move comes in the wake of a 2022 scandal involving Bitkub, one of Thailand’s largest crypto exchanges. The SEC had accused Bitkub’s chief technology officer of using insider knowledge to profit from token trades linked to a major upcoming deal, shaking investor confidence at the time. Global Crypto Faces Scrutiny Over Insider Trading Thailand concerns are not isolated. Insider trading in the crypto world has attracted global attention over the past few years. Notable cases include OpenSea’s former employee Nate Chastain , who was sentenced to three months in prison for using confidential information to profit from NFT sales, and Coinbase employees charged in 2022 for similar misconduct. Even Binance, the world’s largest exchange, suspended an employee earlier this year after allegations of insider trading surfaced. There was also speculation around unusual activity in a wallet linked to US President Donald Trump’s memecoin, raising questions about ethical conduct in politically sensitive crypto projects. The post Thailand SEC Proposes Utility Token Rules to Curb Insider Trading appeared first on TheCoinrise.com .
