Tether issues gold Token in Thailand, analyzing local digital asset regulatory policies

On May 13, 2025, the issuer of the world's largest stablecoin USDT announced that it will launch its gold token (XAU₮) on a digital asset exchange in Thailand. It is reported that each XAU₮ corresponds to 1 ounce of gold in the real world.

Previously, on March 10, 2025, the Thai Securities and Exchange Commission announced USDT as an approved cryptocurrency, and the Thai government also expressed its intention to utilize cryptocurrency and blockchain technology to promote the development of the local tourism industry.

As early as December 2023, the issuer of USDT collaborated with Thailand's largest cryptocurrency exchange to launch an educational project in Thailand focused on stablecoins and blockchain knowledge. The two parties enhanced the digital financial awareness of Thai users through various means. It is worth noting that USDT is also the largest stablecoin traded by Thai users and on that exchange.

According to the Q1 2025 financial report, as of March 31, the market value of USDT's stablecoin issuance is approximately $143.7 billion, with holdings of U.S. Treasury bonds amounting to about $120 billion. In Q1, the new supply of USDT was approximately $7 billion, with an addition of 46 million user wallets.

Despite being the leader in the stablecoin market, the issuer of USDT has been continuously embracing regulation in recent years, hoping to gain more regulatory endorsement and market share. On January 13 of this year, after obtaining a digital asset service provider license issued by El Salvador, the company announced the relocation of its headquarters and related entities from the British Virgin Islands to El Salvador. Senior executives of the company have also purchased properties locally and obtained residency.

As one of the most active economies in Southeast Asia and a world-renowned tourist destination, Thailand's export-oriented economic characteristics lead to frequent cross-border flow of funds and personnel. Under various factors, the Thai government has a 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 released in 2024, Thailand ranked 16th.

Next, we will take the strategic layout of the USDT 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 transformation from cautious observation to active embrace, which is closely related to the global trends in digital economy development and adjustments in Thailand's domestic economic strategy.

On May 14, 2018, Thailand issued the "Digital Asset Business Act" which classifies digital assets into two main categories: cryptocurrencies and digital tokens. The main difference between the two is that cryptocurrencies serve as a medium of exchange, while digital tokens represent rights. At the same time, the Act primarily regulates two dimensions: the issuance of digital tokens and the conduct of digital asset business, the latter 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 tokens, utility tokens ready to be listed on exchanges, cryptocurrencies.

The Thai Securities and Exchange Commission categorizes digital tokens into different types based on their sources of income, including real estate digital tokens, infrastructure digital tokens, sustainability-related digital tokens, and debt tokens. In 2022, a real estate company raised approximately 300 million THB (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:

• Obtain approval from the Thai Securities and Exchange Commission
• Submit the registration application and prospectus for coin issuance to the Thai SEC.
• Qualification requirements that meet regulatory requirements

2. Exempted Regulatory Token Issuance: Digital tokens issued by the Central Bank of Thailand, consumption-oriented utility tokens, and limited issuance that meets specific conditions.

Utility tokens for consumption include:

• Token issuance based on consumption purposes or as digital certificates
• Utility tokens limited to use in specific distributed ledger systems, such as tokens used within centralized finance and decentralized finance, or tokens used as discounts or other subsidies on licensed digital exchanges, as well as tokens representing voting rights.

Limited issuance that meets specific conditions includes:

• Issuance aimed at institutional investors or ultra-high-net-worth clients
• Targeting specific investors with a special relationship with the issuer, the issuance period shall not exceed 12 months, and the number of specific investors shall 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

A regulated digital asset exchange refers to a center or network that provides services for buying, selling, and facilitating trades of digital assets.

Conditions that a digital asset exchange must meet:

1. Register a legal entity in Thailand and obtain a license issued 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 regulatory requirements
5. Compliance with anti-money laundering and anti-terrorism financing regulations
6. Fulfill the obligation of KYC, CDD, and timely reporting of suspicious transactions.

Suggestions for Developing Digital Asset Business in Thailand

1. To conduct token issuance business in Thailand, it is necessary to register a company entity in Thailand and assess whether it is required to obtain a license from the Thai SEC 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 history of bankruptcy or criminal cases.

3. The company should have a reliable business plan and audited financial statements at a minimum.

4. The company should pay attention to timely disclose its operational and financial data in accordance with the requirements of the Securities Regulatory Commission.