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Introduction

Financial technology, or mainly known as Fintech has been a booming industry ever since the strike of Covid-19 when contactless transactions were the only means of dealing. It has become more convenient for every one of every age as everything is mostly one tap away. However, with how simple Fintech has become it can very easily get out of hand without proper supervision. Hence come into play the regulations governing financial technology. Different countries regulate on different playbooks. 

This seven part series will highlight Fintech Regulations in several countries within Asia Pacific, namely:

  1. Malaysia;
  2. Philippines;
  3. Taiwan;
  4. Vietnam;
  5. Singapore;
  6. Thailand; and
  7. Korea.

Series: Thailand

Thailand

Among the Southeast Asian Countries, Thailand ranks fifth in Fintech funding. Thailand is equally expanding their market into the Fintech industry as their public sector plays a huge role in a main contributor in market developing whilst exploring more into Fintech initiatives. To foresee this dive into Fintech the Thai authorities came up with regulations to protect users. Here we will look into how the use of Fintech is regulated in different fields of industry. The main bodies regulating Fintech in Thailand are namely the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) and the Office of Insurance Commission (OIC).  Legislation governing digital transactions has been enacted since the 2000s. 

Electronic Transaction Act 2001: This act facilitates and recognizes the effectiveness of electronic transactions to ensure that its validity is the same as the traditional paper transactions. This act may soon be amended to accommodate greater protection especially for online consumers.   

Electronic Payment Services Business Act 2008: Regulates the electronic payment formats and procedures which is now replaced by the Payment Systems Act 2017.

Payment Systems Act 2017: This act is now the new legal framework that has replaced the Electronic Payment Services Business Act 2008 pertaining to the regulations on electronic payment formats and procedures. Every electronic payment infrastructure is regulated by this Act. The purpose of this enactment was to improve supervision and to bring it in par with international standards. Replacing the previous Electronic Payment Services Business Act 2008, this new regime imposes a duty on the Bank of Thailand to identify any significant private sector e-payment system that needs to be regulated – then makes a recommendation to the Ministry of Finance who will regulate those systems accordingly.

2018 Royal Decree on Digital Asset Businesses: This royal decree is a legislation that specifically regulates digital assets and cryptocurrency. This royal decree also regulates different aspects of creating a digital asset venture in Thailand specifically with regard to the definition of the types of token, fundraising, how initial coin offerings (ICOs) can be conducted, and which cryptocurrencies can be used during ICOs.

Personal Data Protection Act: PDPA is considered to be the first Thailand law that was designed to govern data protection and is also on a comparable standard with the European General Data Protection Regulation (GDPR). PDPA includes data processing, data collection, data storage and data consent protocols. This should not be confused with the GDPA. GDPA provides specific rules for the processing of personal data for research, data minimisation and anonymization. PDPA on the other hand does not include specific rules for the collection, use, nor disclosure of personal data. What they do instead is impose an obligation to all organization that collect, use or disclose information to follow the data protection obligations under PDPA.

Therefore FinTech businesses must acquire consent from data users and use infrastructures that will make certain the data stored is safe, among other requirements. FinTech businesses need to be vigilant that failure to comply with the PDPA regulation will result in them facing harsh and heavy sanctions from the relevant authorities.

This practice applies equally for other FinTech businesses operating overseas whilst providing their services to Thailand users. According to the Act, FinTech businesses that operate overseas must appoint local representatives in Thailand and should be based in a country that has adequate data protection regulations in order to be allowed to conduct international data transfers.

WRITTEN BY

Richard Wee Chambers
For further information, please contact:

Richard Wee – Richard Wee Chambers, Richard Wee Chambers
justright@richardweechambers.com

Richard graduated with a Bachelor of Laws (Hons) from the University of London in 1996, completed the Certificate in Legal Practice in 1998 and was admitted as an Advocate and Solicitor of the High Court of Malaya in 1999.

Believing in professional development, Richard continues to acquire new skills and knowledge. He holds a certificate in Strategic Conflict Management for Professionals, awarded by the Singapore Mediation Centre (2011), a certificate of attendance for the Asian Domain Name Dispute Resolution Centre workshop (2014) awarded by the Kuala Lumpur Regional Centre for Arbitration (KLRCA) (now known as the Asian International Arbitration Centre (AIAC)) and a certificate from the Southeast Asia Regional Anti-Doping Organization (SEARADO) (2018) for Result Management for Anti-Doping.

In 2016, Richard obtained the Certificate of Sports Arbitration from AIAC, a qualification which is a preparatory step towards appointment as a Sports Arbitrator.

In 2019, Taylor’s University appointed Richard as a member of the Legal Profession Advisory Panel, which he continues to serve to date.

In 2019, the Society of Inns of Courts of Malaysia admitted Richard as a member.

In 2019, FIFA and Football Association of Malaysia appointed Richard to the Appeals Committee of the National Disputes Resolution Chambers (NDRC). Richard continues to be a member of NDRC in 2021 and 2022.

In 2020, the Ministry of Youth and Sports appointed Richard to the advisory Panel of Experts.

In 2020, the National Sports Institute appointed Richard as a committee member of the Sports Technology Research and Development Funding Committee.

In 2020, the Malaysia Digital Economy Corporation (MDEC) appointed Richard Wee Chambers as the regulatory partner of the Fintech Booster Programme, a capacity-building platform for fintech start-ups and companies.

In 2021, the Ministry of Science, Technology and Innovation (MOSTI) appointed Richard as a member of the Panel of Experts of the Research and Development Fund for Technology.

In 2021, Richard was admitted to the Association of Anti-Bribery Management System Practitioners of Malaysia.

In 2021, the Union Cycliste Internaationale (UCI) appointed Richard as a member of the Disciplinary Commission and the UCI Arbitral Board, respectively.

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