Thailand's Digital Asset Regulatory Framework

Here are some key insights.

Clear Rules

Thailand has drawn clear lines between digital assets and securities. Digital assets fall under the Digital Asset Business Decree (พรก การประกอบธุรกิจสินทรัพย์ดิจิทัล), while securities are governed by the Securities and Exchange Act (พรบ หลักทรัพย์และตลาดหลักทรัพย์). Crypto falls under the "digital asset" umbrella.

Stablecoin Development in Thailand

The Thai SEC and the Bank of Thailand are currently in discussions about "baht-backed stablecoins" and currently figuring out who is going to be in charge of it at the moment. If we were to look at the Europe's MiCA framework (which just became in full force and effect this past December 31, 2024), stablecoin is classified as e-money tokens under MiCA (Markets in Crypto-Assets Regulation). MiCA's approach focuses on examining the economic substance of the product rather than its form, "substance over form".

Blockchain for Everyone

The Thai SEC is pushing the concept of having a "shared service blockchain" infrastructure so that small enterprises can access and use it too since blockchain can be expensive to build. They are also talking with banks to make sure that different blockchain systems can work together! "Interoperability".

Aligning with Global Rules (MiCA)

Thailand has been updating its Digital Asset and Securities laws since last year to match international standards, like MiCA. Updates will include:

• Moving investment tokens under securities law (since they function like traditional securities).

• Keeping utility tokens and crypto under digital asset regulations.

• Taking a practical "substance over form" approach. Focusing on how assets actually work rather than what they are called.

This approach makes sense. If something walks and talks like a security, it should be regulate like one. This clarify helps both innovators and investors know exactly where they stand.

I think we will see some few big updates this year!

PS - MiCA is the EU’s crypto asset regulation not a directive which means it applies across 27 member states directly. All must comply though they are some grandfather period.