Thailands SEC Prohibits G-Token Usage for Payments and Transfers

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

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

The G-Token will be issued through an approved ICO portal in July, with the Ministry of Finance serving as the registrar. Specific details regarding redemption periods, interest rates, and collateral will be provided later. Only wallet holders on licensed exchanges or through brokers will be allowed to invest.

Trading will be permitted solely on the secondary market, and transfers between exchanges, as well as token withdrawals, will be restricted by smart contracts. The SEC plans to monitor liquidity, ensure transaction transparency, 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 as defined by cryptocurrency law. It’s meant for savings rather than speculation,” emphasized SEC deputy chief Jomkwan Kongsakul.

Secretary-General Pornanong Budsaratthakorn added that the token should offer «secure exit options for investors.»

The issuance of the G-Token will be included in Thailand’s national debt, but it will not exceed the established cap. Pilot sales are set to begin following a 15-day public consultation period regarding the regulatory framework.

Additionally, Finance Minister Phai-Chai Chunhavanji stated that the government is promoting the release of the G-Token. He noted that the tokens can be purchased in fractional amounts (up to six decimal places), making them more accessible for retail investors.

It is anticipated that the returns on these investments will surpass those of bank deposits, leading to increased global demand for Thailand’s government bonds.

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

This project, being developed by the Ministry of Finance and the Bank of Thailand, will enable tourists to convert cryptocurrency directly to baht when paying for goods and services. A pilot launch will begin after regulatory compliance checks and infrastructure preparations are completed.

«This model does not directly involve the Thai baht, which mitigates risks to the national currency,» emphasized Chunhavanji.

Simultaneously, authorities are preparing reforms to the financial legislation with the aim of standardizing regulations for traditional and digital assets that are currently governed by different laws.

Restrictions for institutional investors are also under review: insurance companies and large funds managing trillions of baht currently invest only in government bonds. In the future, they may be able to invest in stocks and private sector assets.

Additional changes are expected in the securities market. The Ministry of Finance plans to tighten regulations for high-frequency trading and reevaluate mechanisms for handling treasury stocks. A separate bill will expand the SEC’s powers, allowing it to refer major cases directly to the prosecutor’s office without intermediaries.

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