Introduction to G-Tokens Regulations
The Thai Securities and Exchange Commission (SEC) has recently engaged the public in a hearing focused on establishing regulations for government-issued digital tokens called G-Tokens. This initiative is part of the SEC’s broader strategy to bring clarity to the marketplace by classifying G-Tokens as digital tokens under the existing Digital Asset Act, thereby placing them under the SEC’s jurisdiction. Notably, G-Tokens will not be allowed to function as a method of payment.
New Digital Investment Tokens Announcement
In a related development, the Ministry of Finance in Thailand announced its intention to launch new digital investment tokens, targeting a total issuance of 5 billion baht (around $150 million) over the coming two months. This project has received the green light from the Cabinet, with Finance Minister Pichet assuring the public that these tokens are intended for digital fundraising and will not be categorized as debt securities.
The initial rollout of 5 billion baht will serve to gauge investor interest and is designed to comply fully with the regulatory frameworks established by the Bank of Thailand.
Investment Opportunities for Small Investors
Small investors will have the chance to participate by investing modest amounts, with anticipated returns expected to exceed the lower end of savings accounts, which currently yield between 1.25% to 1.5%. This announcement comes in the wake of the Bank of Thailand’s decision to decrease its benchmark interest rate to a two-year low of 1.75% in April, further incentivizing alternative investment opportunities for the public.
