tl;dr
Thailand’s Securities and Exchange Commission (SEC) has set rules for the G-Token, a new government-issued tokenized bond aiming to be the world’s first digital asset for state borrowing from the public. The G-Token cannot be used as a means of payment or traded like cryptocurrencies. The government...
Thailand’s Securities and Exchange Commission (SEC) has introduced the G-Token, touted as the world’s first government-issued digital token designed specifically for public borrowing. This innovative tokenized bond is set to raise $150 million through an Initial Coin Offering (ICO) scheduled for July 25, available exclusively to investors holding digital wallets on licensed platforms.
Importantly, the G-Token cannot be used as a payment method, nor can it be traded in the same manner as traditional cryptocurrencies. The SEC clearly distinguishes this digital asset from government bonds, emphasizing that it is not a debt instrument but falls under the Digital Asset Act. Strict regulations are embedded in its smart contracts, prohibiting transfers outside licensed exchanges to prevent manipulation and protect investors.
Deputy Secretary-General Jomkwan Kongsakul underscored that the G-Token is a new class of investment, separated from traditional public debt laws. Meanwhile, SEC Secretary-General Pornanong Budsaratragoon highlighted the intention for the G-Token to serve as a credible, technology-driven investment option rather than a speculative tool.
Thailand’s crypto space is vibrant, with platforms like Binance, Upbit, KuCoin, and local leader Bitkub—the latter commanding a daily trading volume of $44.5 million. However, crypto payments remain banned since 2022, limiting broader adoption. Foreign investors and expats face restrictions as crypto exchange accounts require Thai citizenship, which challenges Thailand’s ambitions to become a hub for digital nomads and crypto innovation.
Though there were initial plans for a crypto payment pilot for foreigners on Phuket island, these initiatives have yet to materialize six months later. In February, the SEC also announced plans for a tokenized securities trading system aimed at institutional investors, signaling ongoing modernization of Thailand’s digital asset infrastructure.
The G-Token represents a pioneering step for government fundraising via digital assets while maintaining cautious regulatory oversight to ensure market stability and investor safety. It signifies Thailand’s commitment to integrating blockchain technology within its financial ecosystem, even as it navigates the fine line between innovation and regulation.