In 2016, the Bank of Thailand (BOT) released the FinTech Regulatory Sandbox Guidelines (FRSG), stipulating the conditions required to operate a fintech business within the Kingdom. BoT claimed that the objective is to accelerate Thailand’s progress in the financial technology sector by encouraging foreign innovation. Innovators are encouraged to streamline existing systems as well as to introduce their own, following the BoT’s goal of supporting Thai business growth.
The FRSG offer more encouragement than restriction and aim to incentivise growth in the fintech sector by offering assistance to both local and foreign businesses, whether they are startups or established firms. They also aim to protect the Thai public from fraud or poorly-managed services that could potentially be damaging by enforcing due diligence and IT security audits. The FRSG encourages networking between fintech startups and banks or other large financial institutions who would otherwise be difficult to reach.
If you are interested in participating in the sandbox programme, please be advised that all other regulations of Thai business governance apply. Silk Legal’s fintech practice group combines our market-leading transactional practices, which enables us to provide a comprehensive service offering to clients operating in or investing in the fintech space. Fast-growing fintech companies appreciate that we are able to provide advice on the regulatory environment affecting financial services, as well as advice on corporate and securities, M&A, licensing, privacy, and intellectual property matters.
Fintech companies seeking to enter the Thai market must comply with several laws and requirements set by regulatory bodies such as the Securities and Exchange Commission and the Bank of Thailand. Silk Legal has assisted numerous companies and start-ups compile and submit several documents to regulators, perform KYC and due diligence reports, and licensing requirements have been met.
The fintech industry sees constant change, which means laws and regulations that govern it are also constantly in flux. Given our wealth of knowledge surrounding fintech, and our understanding of Thailand’s regulations around technological innovations, we are equipped to help these companies thrive in the Thai market.