You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 5, 2021

Stablecoin Policy Guidelines Issued by Bank of Thailand

Subscribe to Updates

On March 19, 2021, the Bank of Thailand (BOT) issued policy guidelines on how stablecoins are to be regulated. These were issued following the BOT’s recent ruling that stablecoins pegged to the Thai baht violate the Currency Act B.E. 2501 (1958).

Stablecoins were developed to offer a more price-stable alternative to traditional cryptocurrencies, which are defined under Thai law as digital units created to serve as means of exchange for goods, services, or any other rights. As traditional cryptocurrencies (such as Bitcoin) have no underlying assets, they are subject to such extreme fluctuations in value, and therefore people often hold them as investments rather than spend them as currency.

Some stablecoins are pegged to the value of a specific fiat currency, such as the Thai baht, and are sometimes even intentionally created to mirror that fiat currency in name, denomination, and value.  The BOT reasoned that such stablecoins—seemingly created to replace Thai baht currency—violate the Currency Act B.E. 2501 (1958), because the public might incorrectly consider them a parallel baht currency.

The BOT’s subsequent policy guidelines on how stablecoins are to be regulated address both baht-pegged stablecoins and those pegged to other currencies or assets.

Stablecoins pegged to the Thai baht (or “baht-backed stablecoins”) that are intended to be used as a means of payment may be considered electronic money (e-money) under the Payment Systems Act B.E. 2560 (2017), which is regulated by the BOT. This type of stablecoin has similar characteristics and risk factors to existing e-money, for which the BOT has issued regulations governing various aspects such as settlement, money laundering, cybersecurity, and consumer protection. Consequently, business operators who intend to launch baht-backed stablecoins in the Thai market should consult with the BOT before doing so. To support their determination on this issue, the BOT notes that their position is consistent with those of other countries, such as Singapore, the UK, and Japan.

The BOT confirmed that stablecoins pegged to foreign currencies or other assets, including those with value backed by a digital mechanism rather than an asset (i.e., algorithmic stablecoins) are currently unregulated. However, the BOT is studying this topic and is open to receiving comments and feedback before deciding whether and how these stablecoins should be regulated.

The BOT itself is developing a cryptocurrency called a retail-type central bank digital currency (CBDC), similar to Digital Yuan of the People’s Bank of China and other government-developed digital currencies, to be freely used by the general public as a stable exchange of value for goods and services. The BOT believes that, when compared to privately issued stablecoins, a CBDC will be more secure and efficient and can meet the demands of all users and business operators.

Cryptocurrency and stablecoins are now at a regulatory crossroads, with Thai regulators set to determine their future. Conceptually, neither traditional cryptocurrency nor stablecoins are regulated under the Emergency Decree on Digital Asset Business Operation B.E. 2561 (2018), but businesses related to them are. The recent BOT rulings indicate some skepticism by Thai regulators toward stablecoins—especially those pegged to the Baht—and the possibility that their widespread introduction into Thailand could create a new and unregulated financial ecosystem that adversely impacts the stability of the financial sector, and by extension the country’s economic development. Nevertheless, the BOT well recognizes this technological development and is therefore actively engaging with it.

Related Professionals

Industries

Technology

Practices

Banking and Finance

Capital Markets

Location

RELATED INSIGHTS​ 

January 22, 2026
On January 20, 2026, Vietnam’s Ministry of Finance (MOF) issued Decision No. 96/QD-BTC to formally launch pilot administrative procedures for licensing crypto asset trading market services in Vietnam. The decision took immediate effect and implements the government’s pilot crypto asset market program under Resolution No. 05/2025/NQ-CP. Notably, competent authorities have now begun accepting license applications, marking the first time Vietnam has operationalized a licensing pathway for crypto trading market operators. Administrative Procedures and Applications The decision stipulates procedures for (i) granting, (ii) adjusting, and (iii) revoking licenses to provide services for organizing crypto asset trading markets. It provides detailed, step-by-step guidance for each procedure, including dossier composition, internal review stages, coordination mechanisms, and statutory timelines. These procedures apply specifically to entities seeking to organize and operate crypto asset trading markets within Vietnam’s pilot regulatory framework. The MOF is the authority responsible for reviewing and deciding on the above procedures, with the State Securities Commission acting as the receiving, coordinating, and procedural focal point. For licensing applications, the MOF will coordinate with multiple authorities, including the State Bank of Vietnam and the Ministry of Public Security, particularly in relation to anti-money laundering, cybersecurity, system safety, and risk control requirements. Applications may be submitted in person, by post, or electronically via the National Public Service Portal or the administrative procedure information system, in line with applicable regulations. Statutory processing timelines vary depending on the specific procedure and stage involved. For applications to obtain a license to organize a crypto asset trading market, the process is conducted in multiple phases: The MOF will issue an initial written response within 20 working days from receipt of a complete and valid initial dossier, following which, upon submission of the full set of required documents, the MOF will complete substantive review and issue the license
Read More
January 21, 2026
On January 16, 2026, Thailand’s Electronic Transactions Committee released for public comment a draft notification that would require social media platforms operating in Thailand to implement identity verification for all user accounts and advertisers, with enhanced scrutiny for high-risk advertising activities. If finalized in its current form, the Notification on Measures to Prevent Technology Crime for Social Media Service Providers would take effect 180 days after publication in the Government Gazette, fundamentally changing how platforms verify users and monetize advertising services. The public comment period is open through February 2, 2026. Mandatory User and Advertiser Identity Verification The draft establishes a universal requirement that all social media service providers implement identity verification measures for every user account. The draft imposes stricter verification obligations for advertisers than for general users. Before publishing any advertisement, platforms must verify the advertiser’s identity at a level sufficient to identify the advertiser, unless the advertiser has previously completed verification. Risk-Based Advertisement Verification The identification requirements for advertisers will be more stringent in the following cases: The advertiser has a history of user complaints or has previously violated the platform’s terms of service. The advertisement involves finance, investment, loans, sensitive personal data, or content flagged as potentially involving cybercrime. The advertisement specifically targets vulnerable groups, such as the elderly or other at-risk demographics. In such cases, platforms must conduct identity verification using government-issued identification documents and must confirm the accuracy, authenticity, and currency of these documents with the issuing government agencies. Alternatively, platforms may verify identity through an eligible digital identity verification and authentication system provider. Information Retention Platforms must retain specific information for each advertiser, including the name of the individual or juristic person and any representatives, government-issued identification documents such as ID cards, passports, or certificates of incorporation, and reachable contact information including
Read More
January 21, 2026
Spurred by global geopolitics and Canada’s Indo-Pacific Strategy, which aims to forge deeper ties with ASEAN, Canadian companies have been showing growing interest in Thailand and Southeast Asia in recent years. To understand the opportunities offered by the region, we sat down with Andrew Stoutley, a Toronto native and the chief operating officer of Tilleke & Gibbins, a leading Southeast Asian regional law firm with over 130 years of history in Thailand. Q: Why are Canadian companies looking at Thailand and Southeast Asia right now? A: Two reasons stand out. First, diversification has moved up the agenda. Many Canadian companies want options outside North America due to tariff volatility and policy uncertainty in the United States, as well as questions around the next Canada–United States–Mexico Agreement mandatory joint review. At the same time, the shift of global production from China to Southeast Asia is accelerating, driven by rising costs, geopolitics, and the need to avoid overreliance on a single market. As a result, Canadian companies are looking for a second production base or a regional hub, and Thailand and its neighbors are natural choices given their manufacturing depth, location, and established supply chains. Second, Canada’s own efforts in the region are gaining traction. The Indo-Pacific Strategy has led to more on-the-ground support, including larger trade missions, upgraded diplomatic posts, and new financing options. Export Development Canada (EDC) now has a presence in Bangkok, giving Canadian companies a direct line to financing and insurance in Thailand. There’s also steady progress on trade frameworks like the recently signed Canada–Indonesia Comprehensive Economic Partnership Agreement (which will come into effect pending domestic procedures), ongoing negotiations of a Canada–ASEAN FTA, and the exciting announcement about the launch of negotiations of a Canada–Thailand FTA. Together, these developments have the potential to make it much easier
Read More
January 13, 2026
On January 9, 2026, Thailand’s Securities and Exchange Commission (SEC) filed a criminal complaint with the Economic Crime Suppression Division (ECD) against five individuals for unauthorized operation of a digital-asset dealer business under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018). This precedent-setting case signals that the regulator is willing to pursue crypto enforcement against natural persons even in the absence of a licensed platform entity. Background and Implications The case follows the SEC’s October 2025 public warning about the use of iris-scanning technology in exchange for certain digital tokens. In its warning, the SEC cautioned that exchanging or trading these specific tokens with unlicensed service providers exposes users to heightened fraud, scam, and money laundering risks. Unlike prior regulatory enforcement matters, which involved platform-level administrative fines for operational or compliance failures, this case targets misconduct by individuals who may not be professional traders but openly advertised their willingness to buy these tokens from the public, opened individual over-the-counter (OTC) trade channels for these tokens, and facilitated off-exchange transactions in a manner resembling ordinary commercial dealing. This enforcement action establishes a clear precedent that natural persons engaging in public-facing digital-asset dealing may face criminal liability under Thai law, even without operating through a corporate or licensed platform structure. Outlook The alleged offenders may not settle this crime by payment of fines. Following the SEC’s referral, the ECD will undertake further investigation, after which prosecutors may review the case and proceed to court. The SEC has stated that it will cooperate fully with enforcement agencies throughout the criminal enforcement process.
Read More