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Crypto Potato 2025-05-27 05:03:47

Thailand Finance Regulators to Restrict World’s First Tokenized Govt Bonds

Thailand’s Securities and Exchange Commission has clarified the rules for a new government-issued tokenized bond called the G-Token as the country plans to be the first to enable state borrowing from the public via digital assets. However, one of the first things the SEC stipulated was that the new tokenized real-world asset (RWA) cannot be used as a means of payment, and cannot be traded like other cryptocurrencies, according to a May 27 Bangkok Post report. While crypto trading remains popular in Thailand, using digital assets for payments has been outlawed by the central bank since 2022. G-Token: A World First The G-Token, announced on May 13, aims to be the world’s first government-issued digital token to raise public funds and help cover its budget deficit. The government plans to issue $150 million worth of tokens through an ICO portal on July 25, with the Finance Ministry as registrar. Details like interest rate, maturity, and collateral will be announced ahead of its launch. It will only be available to investors with digital wallets on licensed exchanges or through securities firms. “Unlike government bonds or equities, a G-Token is not a debt instrument, and therefore it falls under the Digital Asset Act, not traditional public debt laws,” said Jomkwan Kongsakul, deputy secretary-general of the SEC. Strict regulatory safeguards will apply, including anti-manipulation rules and investor protection, and transfers outside or across exchanges are prohibited, enforced by smart contracts. “We want to ensure that G-Token serves as a useful, technology-driven investment innovation, not merely a speculative tool,” said SEC secretary-general Pornanong Budsaratragoon. Thailand’s securities regulator revealed plans to launch a tokenized securities trading system for institutional investors in February. Thailand Crypto Outlook There has been a surge in new digital asset trading platforms entering the Kingdom recently, with Binance, Upbit, and KuCoin joining industry leader Bitkub. Bitkub dominates the market in Thailand with a daily volume of $44.5 million, but the most popular pair is forex with USDT/THB trading, according to Coingecko. However, accounts on these crypto exchanges are restricted to Thai citizens only, alienating the thousands of expats and foreigners who live in the country, which has ambitions of becoming a digital nomad and crypto hub. Thailand was also mulling a crypto payments pilot scheme for foreigners on the tourist island of Phuket. However, nothing had materialized six months after the announcement. The post Thailand Finance Regulators to Restrict World’s First Tokenized Govt Bonds appeared first on CryptoPotato .

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