Tether will launch gold Token in Thailand, interpretation of Thailand's digital asset regulatory policy

On May 13, 2025, the world's largest stablecoin issuer announced that it will launch gold tokens (XAU₮) on a certain digital asset exchange in Thailand, with 1 XAU₮ corresponding to 1 ounce of gold in the real world.

Previously, on March 10, 2025, the Thai SEC announced that a certain stablecoin was recognized as a cryptocurrency. The Deputy Prime Minister of Thailand also stated that the country intends to utilize cryptocurrencies and blockchain technology to promote the development of the local tourism industry.

On December 7, 2023, this stablecoin issuer partnered with the largest cryptocurrency exchange by trading volume in Thailand to launch an educational project on stablecoins and blockchain knowledge in Thailand. The two parties aim to enhance Thai users' understanding of digital finance through establishing educational courses, general movements, incentive learning programs, and Q&A sessions. Notably, this stablecoin is also the largest stablecoin by trading volume among Thai users and on this exchange.

According to the latest quarterly financial report for Q1 2025, as of March 31, the company's issued stablecoin market capitalization is approximately $143.7 billion, with holdings of U.S. Treasuries amounting to about $120 billion, a new supply of approximately $7 billion in the first quarter, and an addition of 46 million user wallets.

Despite being a leader in the stablecoin market, the company has still been looking to gain more regulatory endorsement and market share in recent years by continuously embracing regulation. On January 13th of this year, after obtaining a Digital Asset Service Provider (DASP) license issued by El Salvador, the company announced the relocation of its headquarters and related entities from the British Virgin Islands (BVI) to the Central American island nation of El Salvador. The company's CEO and COO also purchased property locally and obtained residency status.

As one of the most active economies in Southeast Asia, Thailand is a world-renowned tourist destination, known for its export-oriented economy and frequent cross-border flow of capital and personnel. Under the influence of various factors, the Thai government has a relatively friendly policy towards digital assets, attracting many industry giants and startups to engage in cryptocurrency business in Thailand. In a global cryptocurrency adoption index country ranking published in 2024, Thailand ranked 16th on the list.

Next, we will take the strategic layout of this stablecoin issuer in Thailand as a starting point to summarize the characteristics of digital asset regulation in the Thai market.

Thailand's Regulatory Attitude Towards Digital Assets

Thailand's regulatory attitude towards digital assets has undergone a transition from cautious observation to active embrace, a change closely related to the global trends in the digital economy and adjustments in Thailand's domestic economic strategy.

On May 14, 2018, Thailand issued the "Digital Asset Business Act" which categorizes digital assets into two main types: cryptocurrencies and digital tokens. The primary difference between the two is that cryptocurrencies serve as a medium of exchange, while digital tokens represent rights. At the same time, the Act regulates crypto assets from two main dimensions: first, the issuance of digital tokens, and second, the operation of digital asset businesses, including exchanges, market makers, service providers, fund managers, investment advisors, and custodial wallet service providers.

Thailand's Regulation on Token Issuance

1. Regulated Token Issuance:

Investment Token, Utility Token preparing to be listed on exchanges, cryptocurrency.

According to the different sources of income, the Thai Securities and Exchange Commission categorizes digital tokens into real estate digital tokens, infrastructure digital tokens, sustainable development-related digital tokens, debt tokens, etc. In 2022, real estate company SC Asset raised approximately 300 million Thai Baht (about 8 million USD) through an STO, becoming the first approved case.

If investors want to issue regulated Tokens, they need to meet the following conditions:

• Obtained permission from the Thai Securities and Exchange Commission;
• Submit a registration application to the Thai Securities and Exchange Commission for the issuance of digital assets, and submit the prospectus for the issuance of Tokens;
• Qualifications that meet regulatory requirements.

2. Exempted Regulation Token Issuance:

The digital tokens issued by the Bank of Thailand (BOT), consumption-type utility tokens, and limited offerings that meet specific conditions.

Utility Token for Consumption:

• The issuer issues tokens based on consumption purposes or as digital certificates;
• Utility tokens that are not for consumption purposes or as digital certificates, but are limited to use in specific distributed ledger systems, such as tokens used within centralized finance (CeFi) and decentralized finance (DeFi), tokens used as discounts or other subsidies in licensed digital exchanges, and tokens that represent voting rights.

The issuer can conduct a limited offering if it meets the SEC's requirements for investor information disclosure and satisfies one of the following specific conditions:

• Issued to institutional investors or ultra-high-net-worth clients;
• Targeted at specific investors with a special relationship with the issuer, the issuance period must not exceed 12 months, and the number of targeted specific investors must not exceed 50;
• The issuance period does not exceed 12 months, and the total issuance value does not exceed 20 million Thai Baht.

Thailand's Regulation of Digital Asset Exchanges

Regulated digital asset exchange scope: a center or network that provides services for buying, selling, and matching transactions of digital assets.

Conditions that a digital asset exchange must meet:

1. Entity registered in Thailand and licensed by the Ministry of Finance of Thailand;
2. The exchange shall not engage in digital asset trading business;
3. The paid-in registered capital shall not be less than 100 million Thai Baht;
4. Maintain the net asset level required by regulations;
5. Comply with regulatory requirements for anti-money laundering and counter-terrorism financing regulations;
6. Fulfill the obligations of KYC, CDD, and timely reporting of suspicious transactions.

Suggestions for Developing Digital Asset Business in Thailand

1. To carry out token issuance business in Thailand, it is necessary to register a company entity in Thailand and assess whether it is necessary to obtain a license from the Thai Securities and Exchange Commission based on the characteristics of the token.
2. The company's management, such as directors, executive directors, and other management personnel, must not have a bankruptcy or criminal record.
3. The company should have at least a reliable business plan and audited financial statements.
4. The company should pay attention to promptly disclose its operational and financial data in accordance with SEC requirements.

Overall, Thailand has a relatively open regulatory attitude towards digital assets, but it also emphasizes risk control. For companies intending to conduct digital asset business in Thailand, it is crucial to understand and comply with local regulatory requirements.