The Securities and Exchange Commission (SEC) of Thailand has imposed restrictions on the use of its tokenized government bonds, known as G-Token, prohibiting their use as a payment method.
In a report by the Bangkok Post, the regulatory body clarified its stance on G-Tokens, indicating that the primary purpose is not to engage in trading akin to other cryptocurrencies.
“Our goal is to position G-Token as an innovative investment tool powered by technology, rather than a speculative asset,” stated SEC Secretary-General Pornanong Budsaratragoon.
On May 13, Thailand’s Ministry of Finance unveiled its plan to issue $150 million in digital investment tokens, enabling the public to buy government bonds through blockchain technology.
G-Token is set to become the first digitally issued government token to raise funds from the public, aiding in the coverage of the country’s budget deficit.
G-Token to Be Issued Through IPO
Jomkwan Kongsakul, the SEC’s Deputy Secretary-General, highlighted that the issuance of government tokens would proceed through an initial coin offering (ICO) portal, with the Finance Ministry acting as the registrar.
The SEC confirmed that the official launch is slated for July this year, with additional details, such as interest rate, maturity period, and collateral specifications, to be disclosed prior to the launch.
In addition, the regulator has conducted public discussions regarding the regulatory framework for G-Token, allowing for a feedback period of 15 days.
“Unlike traditional government bonds or equities, G-Token is classified as a digital asset and is governed by the Digital Asset Act rather than conventional public debt laws,” Jomkwan Kongsakul explained.
According to the regulations, investors with digital wallets linked to authorized crypto exchanges will be able to invest directly in G-Token. For those utilizing security firms as intermediaries, the firm will maintain custody of the tokens.
Thailand is set to launch $150 million worth of digital investment tokens, marking a step toward financial inclusivity for retail investors. #Thailand #SEC https://t.co/2akullmpsP
— Finance Newso.com (@Finance Newso) May 14, 2025
Thailand’s Digital Bond Tokens Tradable on Secondary Market
Jomkwan also noted that these tokens would be tradable on a secondary market, offering investors the flexibility to either trade them or hold them until maturity.
“This structure allows for exit opportunities while promoting a savings-oriented investment approach,” she added.
The SEC will oversee G-Token trading in the secondary market, while also implementing measures against market manipulation, ensuring trading transparency, and safeguarding investor interests.
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