BANGKOK, Thailand – The Securities and Exchange Commission (SEC) has introduced new regulations for Government Tokens to boost public investment options and government funding, effective from July 21st.
These rules aim to leverage technology to enhance the efficiency of government fundraising while expanding savings and investment opportunities for the public in the digital era. The move follows a Cabinet resolution on May 13th, which approved the Ministry of Finance’s plan to issue G-Tokens as a borrowing method under the 2005 Public Debt Management Act. The SEC noted that a public hearing on the draft regulations found most stakeholders in agreement with the proposal.
The new regulations define G-Tokens as a distinct digital token category under the 2018 Emergency Decree on Digital Asset Businesses. These tokens, issued by the Ministry of Finance, entitle holders to the repayment of principal and returns as specified by the ministry.
Consistent with other financial products from the Ministry of Finance, the tokens will be exempt from requiring approval for public offerings, filing registration statements, or being sold through an ICO portal.
License exemptions will also apply to certain financial operators. Digital asset exchanges and dealers will not need a digital asset broker license for G-Token services. Similarly, securities firms will be exempt from needing a digital asset business license for activities related to these tokens and will be supervised under the 1992 Securities and Exchange Act.
Additionally, the rules establish standards for G-Token services, including guidelines for customer advice, data collection, and the disclosure of indicative prices. Specific rules for digital asset exchanges cover contracts, information disclosure, and their own investments in G-Tokens. (NNT)
