In a significant development on December 5, 2023, the Central Bank of Myanmar (CBM) issued Letter No. FE-1/2937 granting authorized dealer licensed banks (ADLBs) the authority to freely transact in foreign currency trades, buying and selling at the market exchange rate for Myanmar kyat (MMK) as proposed by buyers and sellers through online trading platforms. Offshore remittances, however, must comply with the remittance criteria set by the Foreign Exchange Supervisory Committee. The online trading platform Refinitiv, initiated in June 2022 under the CBM’s guidance, facilitates the buying and selling of foreign currency between ADLBs and between banks and customers. The initiative was implemented in accordance with CBM Letter No. FE-1/789, dated June 21, 2023. The platform’s inception saw the exchange rate set at over MMK 2,900 per USD 1. Then, in August 2023, the CBM ordered banks and traders to limit foreign exchange transactions to an approved online trading platform, again with the exchange rate fixed at MMK 2,900 per USD 1. Transactions outside of online trading platforms continue to be governed by the exchange rate set by the CBM of 2,100 MMK per USD 1. Conversion Rules for Exporters On December 6, 2023, the CBM issued Notification No. 26/2023 lowering the percentage of Myanmar companies’ export earnings in foreign currency subject to mandatory conversion into MMK from 50% to 35% at the current official exchange rate set by the CBM at USD 1 to MMK 2,100. This mandatory conversion must follow the requirements for mandatory conversion of foreign currency, which remain in effect. For more details on foreign exchange developments, or on any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email protected].

Thailand’s Securities and Exchange Commission (SEC) has updated its regulations regarding public initial coin offerings (ICOs) that exhibit debt-like or infrastructure-backed characteristics. These new regulations are set to transform the landscape for digital fundraising, ensuring enhanced investor protection and risk mitigation. The introduction of these regulations is a major move toward cultivating a more transparent and secure digital token market in Thailand. It highlights the importance of comprehensive information disclosure and aligning digital-asset fundraising practices with established financial standards. The adjustments require more collaboration between token issuers and ICO portals to comply with the developing regulatory environment. The key features of the new regulations, which took effect on November 16, 2023, are summarized below. Debt-Like ICOs Debt-like digital tokens are digital tokens for which a fixed rate of return is predetermined. The rate does not vary based on the performance of the project or enterprise, but it may be supplemented by extra returns. To ensure that investors have access to adequate and essential information prior to making informed investment decisions, and to evaluate the risk of default by the issuer, the regulation requires disclosure of the project’s creditworthiness and risk assessment factors, as detailed below. Project creditworthiness. Disclosures about project creditworthiness should include information about the credibility assessment of the project, which should be conducted reasonably by an ICO portal or an independent expert. Risk assessment factors. Disclosures should include information about the factors considered in the assessment of risks—particularly the financial capability to repay the investment project’s debt. Infrastructure-Backed ICOs Infrastructure-backed digital tokens are issued for investment in infrastructure assets or to earn a share of the revenue stream from infrastructure projects. The regulations for the ICOs of these infrastructure-backed tokens have been revised to align with those for infrastructure trusts. These regulatory updates cover various aspects: Definition

Over the past two years, Laos has experienced a sharp depreciation in the value of the kip (LAK) against foreign currencies. To thwart this depreciation and get its currency back on track, the government took a series of measures and issued the Law on Foreign Exchange Management No. 15/NA of July 7, 2022 (the “FX Law”) to improve management of the foreign currency and reiterate restrictions on foreign currency in the country. The amended law also aimed to strengthen foreign exchange liquidity and increase the reserve of foreign currency held in Laos. This year, the prime minister of Laos issued the Order on the Implementation of Foreign Exchange Management, which came into force on July 14, 2023. The order addresses foreign currency use, movement, and possession and clarifies administrative roles regarding the FX Law. This article outlines some of the key points related to the FX Law and the prime minister’s recent order. Use of Foreign Currency Other than a major relaxation regarding remuneration for foreign employees, the amended FX Law retains Laos’ strict regulatory approach to the use of foreign currencies. The general rule is that foreign currency payments for goods, services, debt, dividends, or taxes are prohibited; these payments must be in LAK. The amended law also seems to prevent suggestions that a price in LAK may be adjusted based on another currency. One of the few exceptions to these requirements is for the export of goods and services abroad, in which case it is acceptable to receive payment in foreign currencies. Similarly, the import of goods may allow payment in foreign currency. Announcements or advertisements of the price of goods or services in a foreign currency are likewise prohibited, as is offering a salary in foreign currency when advertising a job in Laos. Similarly, employees’ remuneration,

Thailand has announced tax exemptions for issuers and holders of depositary receipts (DRs) of listed foreign securities to encourage DR transactions, create more investment products in the Thai capital markets, and promote and offer opportunities for retail investors to invest in foreign securities. The exemptions are laid out in the Royal Decree under the Revenue Code B.E. 2481 (No. 775) B.E. 2566 (Royal Decree No. 775), which came into force on August 16, 2023. DRs are certificates representing underlying foreign securities listed on a foreign exchange, but DRs are listed and traded on the Stock Exchange of Thailand (SET). Holders of a DR can receive the same benefits payable from the underlying listed foreign securities as direct holders of the listed foreign securities. According to the relevant notifications from Thailand’s Securities and Exchange Commission (SEC), DRs include the following: Certificates that confer the right to receive financial benefits equivalent or in reference to the received financial benefit from certain underlying listed foreign securities held by the certificate’s issuer; Unitized instruments having the same terms and conditions for each unit and issued by a custodian for the purpose of representing the holder’s right to claim for the deposited underlying listed foreign securities subject to the deposit agreement, or other rights as described by the custodian in the instrument. Issuance of a DR is subject to similar approval and disclosure requirements as those the SEC sets for general securities issued in Thailand. The recently announced tax exemptions for DR issuers and holders—which also apply to fractional DRs (also called DRx)—are detailed below. Corporate Income Tax Exemption Under Royal Decree No. 775, companies or registered partnerships that issue a DR in accordance with the Securities and Exchange Act B.E. 2535 (1992) (SEA) are exempt from paying corporate income tax (CIT) for income