SEC eager to develop carbon credit trade

Tokens to be allowed on exchanges

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The Securities and Exchange Commission (SEC) is preparing to allow tokenised carbon credits to be traded on digital asset exchanges as well as brokers and dealers, in a bid to promote Thailand as a carbon credit trading hub.

Earlier this month the SEC approved regulatory amendments to allow digital asset exchanges, brokers and dealers to offer services for tokenised carbon credits, tokenised renewable energy certificates (RECs), and tokenised carbon allowances.

The move aims to expand investment options and position Thailand as a regional hub for carbon credit trading. The SEC will seek public consultation on the proposed changes, the regulator said in a statement.

In August 2023, the SEC revised its regulatory framework for utility tokens, exempting consumption-based utility tokens (Utility Token Group 1) from regulatory oversight. This restriction also prevented digital asset businesses from offering tokens related to carbon reduction efforts, such as carbon credits, RECs, and carbon allowances.