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RegTech is composed of the words 'regulatory' and 'technology'. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Introduction
Attitude of the country towards RegTech-services
So far, RegTech is not well known in Thailand, and is mostly discussed on a basic conceptual level. The area that is considered the most advanced in terms of RegTech development in Thailand is electronic identity verification and authentication (e-KYC), and the regulatory sandboxes overseen by different government authorities in Thailand.
Legal affairs
Obligations and requirements to provide RegTech-services
There is no specific law that directly governs other RegTech services except the “regulated digital ID service” under the supervision of ETDA. The regulated digital ID services are 1) identity proofing service, 2) authenticator lifecycle management service, 3) authentication service, and 4) digital ID networks/systems. Please see further details in the KYC Requirement section.
However, there are various industry-specific regulations and license requirements specific to each industry in respect to financial services (e.g. for blockchain or banking services) that are indirectly relevant to RegTech services. Some current examples of RegTech services in Thailand include e-tax invoice and e-receipt, e-KYC, the application of biometrics, and alternative credit as part of mobile banking services.
The ETDA as the regulator of laws relating to electronic transactions has provided certification services for some RegTech services (e.g., e-tax invoice and e-receipt issuance system, e-meeting system) to certify the compliance with the legal requirements and ETDA recommended technological standards.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
ETDA is in the process of overhauling the Electronic Transactions Act. The draft act is intended to allow people to implement new technology in conducting electronic transactions without specific regulatory approval and replace the licensing and registration scheme (e.g., regulated digital ID services) with the trust-mark scheme.
Economic conditions
Market size for RegTech-services and biggest companies in this business area
Information on the market share for RegTech-services is not publicly available. The most well-known RegTech company in Thailand is probably iTax, an income tax management application.
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area
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