Tether Launches Gold Token in Thailand, Interpreting Local Digital Asset Regulatory Policies

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

Previously, the Thai Securities and Exchange Commission recognized USDT as a legal cryptocurrency on March 10, 2025. At the same time, the Thai government expressed its intention to use cryptocurrency and blockchain technology to promote the development of the local tourism industry.

In December 2023, the issuer of USDT collaborated with a large cryptocurrency exchange in Thailand to launch a stablecoin and blockchain knowledge education project locally. It is worth noting that USDT is the largest stablecoin by trading volume on that exchange.

According to the issuer of USDT's financial report for the first quarter of 2025, as of March 31, the market value of its issued stablecoins is approximately $143.7 billion, with about $120 billion held in U.S. Treasury bonds. In the first quarter, there was an additional supply of USDT of approximately $7 billion, with 46 million new user wallets created.

Despite dominating the stablecoin market, the issuer of USDT has been actively embracing regulation in recent years. On January 13 of this year, the company announced it would relocate its headquarters from the British Virgin Islands to El Salvador after obtaining a digital asset service provider license in El Salvador, and company executives also purchased homes locally and obtained residency.

As one of the most active economies in Southeast Asia, Thailand is known for its tourism industry and is an export-oriented economy with frequent cross-border flows of funds and people. Driven by multiple factors, the Thai government has a friendly attitude towards digital assets, attracting numerous industry giants and startups. In the 2024 Global Cryptocurrency Adoption Index, Thailand ranks 16th.

The following will take the layout of the USDT issuer in Thailand as a starting point to outline the characteristics of digital asset regulation in Thailand.

Thailand's attitude towards digital asset regulation

Thailand's regulatory attitude towards digital assets has shifted from cautious to proactive, closely related to the global trends in the digital economy and adjustments in Thailand's domestic economic strategy.

In May 2018, Thailand issued the "Digital Asset Business Act," which categorizes digital assets into two types: cryptocurrencies and digital tokens. The act primarily regulates from two dimensions: the issuance of digital tokens and the conduct of digital asset businesses.

Thailand Token Issuance Regulation

1. Regulated Token Issuance: Investment Tokens, Utility Tokens for prospective listing exchanges, Cryptocurrencies.

The Thai SEC categorizes digital tokens based on their sources of income into categories such as real estate, infrastructure, sustainable development-related, and debt tokens. In 2022, a real estate company raised approximately 300 million THB through an STO, becoming the first approved case.

The conditions for issuing regulated tokens include: obtaining permission from the Thai Securities and Exchange Commission, submitting a registration application and prospectus, and meeting qualification requirements.

2. Exempted regulatory token issuance: digital tokens issued by the Bank of Thailand, consumption-type utility tokens, and limited issuance that meets specific conditions.

Consumption-type utility Tokens include: Tokens based on consumption purposes or as digital certificates, as well as utility Tokens limited to use within specific distributed ledger systems.

Limited issuance that meets specific conditions includes: issuance aimed at institutional investors or ultra-high net worth clients, issuance aimed at specific investors (no more than 50 people within 12 months), and total issuance value not exceeding 20 million Thai Baht (within 12 months).

Thailand Digital Asset Exchange Regulation

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

The digital asset exchange must meet the following conditions:

1. Register an entity in Thailand and obtain a Ministry of Finance license.
2. 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 KYC, CDD, and suspicious transaction reporting obligations

Suggestions

1. In Thailand, conducting token issuance business requires going through a locally registered company and evaluating whether a license from the Securities and Exchange Commission is needed based on the characteristics of the token.

2. The company's management team must not have any bankruptcy or criminal record.

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

4. Timely disclose the company's operating and financial data as required by the CSRC.