The Securities and Exchange Commission (SEC) of Thailand has officially approved the issuance rules for the G-Token, a state digital token.
Developed by the Ministry of Finance to cover the budget deficit, the instrument cannot be used for payments or transfers.
The G-Token will be issued through an approved ICO portal in July, with the Ministry of Finance acting as registrar. Details such as maturity, interest rate, and security will be disclosed later. Investment will be open to wallet holders on licensed exchanges or through brokers.
Trading is permitted only on the secondary market. Transfers between exchanges and token withdrawals will be blocked by smart contracts. The SEC intends to monitor liquidity, transaction transparency, and prevent manipulation. Exchanges are required to implement monitoring systems, display indicative prices, and engage market makers.
“The G-Token is not a debt instrument but a digital asset under cryptocurrency law. It is a savings tool, not for speculation,” emphasized SEC Deputy Chief Jomkwan Kongsakul.
The Commission’s Secretary-General Pornanong Budsaratragoon added that the token should provide “secure exit options for investments.”
The issuance of the G-Token is included in Thailand’s national debt but will not exceed the set ceiling. Pilot sales will commence following a 15-day public consultation on the regulatory framework.
Additionally, Finance Minister Phaychai Chunhavadjira emphasized that the government is promoting the issuance of the G-Token. According to him, tokens can be purchased in fractional amounts (up to six decimal places), making them more accessible to retail investors.
It is expected that the returns on such investments will exceed bank deposits, and global demand for Thai government bonds will increase.
Tourists to Be Allowed to Pay with Cryptocurrency
The Thai government intends to allow tourists to pay for purchases with cryptocurrency through platforms linked to credit cards. The decision is part of a strategy to modernize the financial system and integrate digital assets.
The project, developed by the Ministry of Finance and the Bank of Thailand, will enable tourists to convert cryptocurrency into baht directly when paying for goods and services. The pilot launch will begin after regulatory requirements are met and infrastructure is prepared.
“This model does not directly affect the Thai baht, reducing risks to the national currency,” Chunhavadjira emphasized.
Simultaneously, the authorities are preparing a reform of financial legislation. The goal is to unify the regulation of traditional and digital assets, which are currently governed by different laws.
Restrictions for institutional investors are also being reviewed: insurance companies and large funds managing trillions of baht currently invest only in government bonds. In the future, they will be able to invest in stocks and private sector assets.
Additional changes will affect the securities market. The Ministry of Finance plans to tighten rules for high-frequency trading and review mechanisms for dealing with treasury shares. A separate bill will expand the SEC’s powers, allowing it to refer major cases to the prosecutor’s office without intermediaries.
Back in May, Bloomberg reported on plans to launch the G-Token to raise 5 billion baht.