On May 26, Pornanong Busaratrakul, Secretary-General of the Securities and Exchange Commission (SEC), announced that the SEC will hold a public hearing on the regulatory principles for the government-issued digital token (G-Token), starting from May 26, 2025, for a 15-day period. The results will be used to draft official regulations. The proposal outlines four main points:

  1. Nature of G-Token Issuance: The Ministry of Finance will issue G-Tokens as a form of public borrowing under Section 10 of the Public Debt Management Act, allowing token holders to receive principal and interest. G-Tokens are not considered securities under the Securities Act but fall under the Digital Asset Emergency Decree as a form of digital token.
  2. G-Token Offering: The Ministry of Finance aims to offer G-Tokens mainly to the public to broaden access to new financial products. The Ministry is preparing an offering document and does not need SEC approval to issue the tokens. The SEC may allow digital asset operators and securities companies to facilitate G-Token trading.
  3. Secondary Market Trading: G-Tokens can be traded on digital asset exchanges. Investors can buy/sell via their digital asset accounts or request services from securities firms. This enhances liquidity, especially for those needing funds before the tokens mature.
  4. Market Regulation: The SEC will ensure fair trading and market order, including market surveillance systems and investor alerts for significant price changes. An indicative price mechanism will help prevent price distortion. Violations, such as market manipulation, may result in criminal and civil penalties under relevant sections of the Digital Asset Decree.

Pornanong noted that these SEC rules will only take effect once the Ministry of Finance finalizes its G-Token issuance framework.

She emphasized that while credit risk is low due to government backing, market risk depends on secondary market demand/supply, and interest rate risk must be monitored going forward. The SEC supports savings and investment innovation but aligns with the Bank of Thailand in opposing digital assets as a payment medium. The SEC’s core role remains investor protection, regardless of whether financial products are issued by the state or private sector.