Thailands SEC Bans G-Token for Payments and Transfers

The Securities and Exchange Commission (SEC) of Thailand has officially approved the regulations for the issuance of G-Token, the state digital token.

This instrument, created by the Ministry of Finance to address budget deficits, cannot be used for purchasing goods or making transfers.

The G-Token is set to be released via an authorized ICO portal in July, with the Ministry of Finance acting as the registrar. Specific details regarding the maturity period, interest rate, and collateral will be announced later. Only wallet holders on licensed exchanges or through brokers will be able to invest.

Trading will be restricted to the secondary market, with smart contracts preventing transfers between exchanges and withdrawals of tokens. The SEC aims to oversee liquidity, ensure transparency in transactions, and prevent market 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 serves as a savings tool rather than for speculation,»_ emphasized SEC Deputy Secretary General Jomkwan Kongsakul.

The SEC Secretary General, Pornanong Budsaratregun, added that the token should provide “secure exit options for investors.”

The issuance of G-Token will be included in Thailand’s public debt, but it will not exceed the established limit. Pilot sales will commence following a 15-day public consultation on the regulatory framework.

Moreover, Finance Minister Phai Chidchob stated that the government is encouraging the launch of G-Token. He noted that tokens could be purchased in fractional amounts (up to six decimal places), making them more accessible to retail investors.

It is anticipated that the returns on these investments will surpass traditional bank deposits, and global demand for Thailand’s government bonds is expected to increase.

The Thai government plans to allow tourists to make purchases with cryptocurrency through credit card-linked platforms, as part of its strategy to modernize the financial system and integrate digital assets.

This initiative, developed by the Ministry of Finance and the Bank of Thailand, will enable tourists to convert cryptocurrency directly into baht when paying for goods and services. A pilot launch will occur after regulatory requirements are verified and the necessary infrastructure is prepared.

_»This model does not directly impact the Thai baht, which reduces risks for the national currency,»_ emphasized Chidchob.

Additionally, authorities are preparing to reform financial legislation, aiming to unify the regulations governing traditional and digital assets, which are currently managed by different laws.

Restrictions for institutional investors are also under review. Currently, insurance companies and major funds managing trillions of baht are confined to investing in government bonds, but in the future, they may be able to invest in stocks and private sector assets.

Further changes are planned for the securities market, with the Ministry of Finance intending to tighten rules for high-frequency trading and revise mechanisms for dealing with treasury stocks. A separate bill will enhance the SEC’s powers, allowing it to refer significant cases directly to prosecutors without intermediaries.

It is worth noting that on May 13, Bloomberg reported on plans to launch G-Token to raise 5 billion baht.