The SEC stated that for digital asset exchanges, brokers, dealers, fund managers, as well as consultants and custodial wallet providers, participation in the sandbox is a prerequisite for admission to the country's crypto market.
According to the regulator, a closed environment and an open dialogue with government authorities will contribute to the safe development of the digital asset market.
"Participants in the regulatory sandbox must innovate in the development of digital asset services within a year, confirm their qualifications, demonstrate capital adequacy, work system and management structure to ensure readiness to provide cryptocurrency services in the Thai capital market," the SEC said in an announcement.
The regulator clarified that, if necessary, participants can request an extension of the testing period for their services after the expiration of the sandbox.
Earlier, the Securities and Exchange Commission of Thailand announced its intention to block unlicensed cryptocurrency platforms in order to protect users and combat money laundering.