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

August 23, 2024

Thailand SEC Amends Supervisory Framework for Ready-to-Use Utility Tokens

Subscribe to Updates

Thailand’s Securities and Exchange Commission (SEC) amended its utility token supervisory framework by issuing seven notifications that came into effect on August 13, 2024. Ready-to-use utility tokens (tokens that can be used immediately to acquire specific goods or services), which were previously unregulated, are now subject to the supervisory scheme set forth by the seven new notifications in both primary and secondary markets. This is intended to provide an investor protection mechanism that responds to the characteristics, risks, and usage of the different types of ready-to-use utility tokens.

Under the new notifications, ready-to-use utility tokens are categorized into two groups. These are detailed below.

Group 1 Utility Tokens

Group 1 utility tokens include ready-to-use utility tokens issued for consumption purposes or as a digital representation of a certificate. Examples include loyalty points, digital movie or concert tickets, NFTs, and carbon credits, among others.

Principally, there is no change in the regulation of group 1 utility tokens under the new notifications. In the primary market, issuance of this type of token is not subject to the initial coin offering (ICO) requirements.

In the secondary market, providing services related to group 1 utility tokens is not considered to be the same as operating a digital asset business with licensing requirements under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018). Licensed digital asset operators (including exchanges, brokers, and dealers) are not permitted to list or trade group 1 utility tokens.

To provide services in relation to group 1 utility tokens, these licensed digital asset operators must establish a separate entity to provide those services and must not use names or messages that could cause the public to misunderstand that the separate entity is engaged in a digital asset business under SEC supervision.

Group 2 Utility Tokens

Group 2 utility tokens include other ready-to-use utility tokens besides those specified as group 1 utility tokens. Examples include native coins, governance tokens, DeFi/Cefi projects, and exchange tokens, among others.

For group 2 utility tokens, the new notifications impose more stringent regulations, including an ICO requirement if the tokens will be listed on a licensed digital asset exchange.

In the secondary market, providing services related to group 2 utility tokens is considered to be operating a digital asset business that requires a license under the Emergency Decree on Digital Asset Businesses. Therefore, only the licensed digital asset operators mentioned above can list, trade, or provide services in relation to these tokens.

Additional Requirements

The new notifications also emphasize that issuers must not issue tokens to be used as a means of payment (MOP) and must not accept tokens for staking purposes except as a verification mechanism, a voting method, or for joining events for sharing benefits from ecosystem activities. The new notifications further prescribe the characteristics of utility tokens that do not constitute MOP. These include a variety of common utility tokens, such as those that are specially created for loyalty programs or marketing promotion purposes, to purchase in-game items, to pay gas fees for digital transactions, and so on.

Various oversight mechanisms on digital asset exchange supervision were also strengthened, especially in relation to price speculation. These changes include revising minimum requirements for listing rules and trading rules, requiring signposting to inform investors about potential risks from investing in a certain token, and imposing disclosure requirements on issuers when tokens are to be listed on an exchange.

The governance of not-ready-to-use utility tokens remains unchanged under the new notifications, with the issuance of not-ready-to-use utility tokens subject to the ICO requirements.

For more information on these new notifications, or on any aspect of digital assets and cryptocurrency in Thailand, please contact Kobkit Thienpreecha at [email protected], Pornpan Wichawut at [email protected], Napassorn Lertussavavivat at [email protected], or Rujaporn Paritsantik at [email protected].

Related Professionals

Industries

Fintech

Technology

Location

RELATED INSIGHTS​ 

August 21, 2025
On August 18, 2025, Thailand’s Securities and Exchange Commission (SEC), in collaboration with the Ministry of Finance, the Anti-Money Laundering Office, and the Ministry of Tourism and Sports, announced the launch of TouristDigiPay. The initiative, implemented under the SEC’s Regulatory Sandbox, allows foreign tourists to convert digital assets into Thai baht for use in everyday transactions in Thailand. Foreign tourists who opt to participate in TouristDigiPay must open two accounts once they are in Thailand: An account with a licensed digital asset operator to sell or exchange digital assets for Thai baht; and A tourist wallet account with a licensed e-money operator regulated by the Bank of Thailand. Funds from digital asset sales will be transferred into the tourist wallet, enabling tourists to make payments at participating merchants that accept e-money. Key Regulatory Requirements The TouristDigiPay project will operate for a period of up to 18 months, with the following conditions: Only licensed digital asset brokers, dealers, and exchanges integrated with licensed e-money operators are eligible to participate. Operators must implement anti-money laundering (AML) protocols that are proportionate to the assessed risk level. These include: Conducting know-your-customer and customer-due-diligence (KYC/CDD) checks on all users. For monthly transactions exceeding THB 50,000 per person, verifying the source of the digital assets and assessing AML risk using internationally recognized blockchain forensic tools or equivalent procedures. Suspending or rejecting services if digital assets are transferred from wallets flagged for AML concerns. Ensuring that conversion between digital assets and fiat includes safeguards such as matching account names and returning digital assets only to the original wallet. The following transaction limits apply to participants in the TouristDigiPay initiative: Payments to small vendors are capped at THB 50,000 per month. Payments to vendors who have completed the know-your-merchant (KYM) process are capped at THB 500,000 per
Read More
August 15, 2025
More than a decade after the issuance of Decree No. 52/2013/ND-CP (as amended by Decree No. 85/2021/ND-CP; collectively, “Decree 52”), Vietnam’s legal framework for e-commerce is under growing pressure to keep pace with the evolving digital economy. While Decree 52 has provided a foundational framework, it has shown certain limitations in keeping up with issues such as counterfeit goods, intellectual property enforcement, unqualified products, and emerging models like livestream selling and affiliate marketing. To address these regulatory gaps, the Ministry of Industry and Trade (MOIT) has released the 2025 Draft E-Commerce Law (“Draft Law”) for public consultation. The Draft Law is intended to supersede the current framework under Decree 52 and establish a more detailed and comprehensive legal foundation for the regulations of e-commerce activities in Vietnam. It is currently expected to be submitted to the National Assembly for review and potential adoption during its 10th session in October 2025. In this article, we discuss the Draft Law’s most significant updates and legal developments in comparison to existing regulations, and assess the practical challenges that businesses may face in preparing for implementation in the near future. Platform Classification: Toward a More Nuanced Framework Unlike Decree 52’s simpler structure, which broadly categorized platforms into either (i) websites selling goods and services or (ii) websites providing e-commerce services, the Draft Law introduces a more detailed framework that aims to classify platforms based on their technical functions and business models. Specifically, the Draft Law introduces a four-tier classification system for e-commerce platforms, consisting of: (i) Direct Business Platforms, (ii) Intermediary Platforms, (iii) Social Networks with E-Commerce Functions, and (iv) Multi-Service Integrated Platforms. This approach reflects an effort to more accurately capture the complexity of today’s e-commerce landscape, including hybrid platforms such as TikTok Shop. While this approach reflects the growing complexity of
Read More
August 6, 2025
Thailand’s Digital Government Development Agency (DGA) has released drafts of two pivotal documents to guide Thai government agencies in adopting cloud technology and classifying data for cloud usage. These draft guidelines, open for public hearing through August 12, 2025, are part of the national “Go Cloud First” policy, which aims to accelerate digital transformation, improve efficiency, and ensure robust data security across the public sector. The new standards will have significant implications for both government agencies and cloud service providers operating in Thailand. Highlights of the draft guidelines are presented below. Government Cloud Usage Guidelines Cloud-first transformation: All government agencies are directed to prioritize cloud solutions for new IT projects, in line with the cabinet’s “Go Cloud First” policy. Cloud model selection: Agencies must assess their needs and select the most appropriate cloud deployment model—public, private, hybrid, or community cloud—based on the sensitivity of the data and operational requirements. Service types: The guidelines provide criteria for choosing between Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), emphasizing the importance of using standard, non-customized services where possible. Cost management: Agencies are required to plan and separate cloud-related expenses, ensuring transparency and efficient budget allocation. Cloud migration: The guidelines outline the steps for migrating to the cloud and highlight the role of cloud service providers in facilitating the process, including supporting innovation and enabling smooth exit strategies. Procurement compliance: All cloud procurement must comply with public sector procurement laws and regulations. Only providers meeting government-mandated standards can be selected. Security and shared responsibility: The guidelines clarify the division of security responsibilities between cloud providers and government agencies. While providers manage infrastructure security, agencies remain responsible for data, application, and access controls. Legal framework: Agencies must comply with the Digital Government Administration Act, Cybersecurity
Read More
August 1, 2025
Thailand’s Personal Data Protection Committee (PDPC) announced to the press on August 1, 2025, that it had issued eight new administrative fines under Thailand’s Personal Data Protection Act B.E. 2562 (2019) (PDPA) in five cases of noncompliance by public and private entities. The enforcement actions reflect a growing commitment by the PDPC to penalize noncompliance across all sectors, regardless of organizational type or size. The total amount imposed to date was approximately THB 21.5 million (approx. USD 654,690), underscoring the financial risks tied to PDPA violations. The five cases—one involving a state agency and the remainder in the private sector—are summarized below. Case 1: State Agency Providing Online Services to the Public The order in this case stemmed from a cyberattack on a state agency’s web app, resulting in personal data of 200,000 data subjects being leaked to and sold on the dark web. The software developer was also found to have implemented no privacy by design, lacked an access control system, had no data breach prevention measures, and failed to conduct risk assessments or review existing security measures. Key noncompliance identified: Lack of appropriate security measures Weak password protection No risk assessment or ongoing review of security measures No data processing agreement with software developer that acted as data processor The state agency and the developer were each fined THB 153,120 (approx. USD 4,670). Case 2: Private Hospital This case involved a hospital that engaged an individual contractor to destroy patient medical record documents. However, the contractor stored the documents at their own premises, failed to follow the required destruction protocols, and ultimately used the medical records to wrap sweets, resulting in the leak of over 1,000 records during the destruction process. The contractor also failed to notify the hospital of the data breach. Although there was a
Read More