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Key Points on Regulating Non-Investment Digital Tokens (Utility Token)

2025/11/20 02:48:02

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As blockchain technology and digital assets play an increasingly important role in the global economy, Thailand must adapt to this trend. One of the most talked-about tools is the Utility Token, or digital token for usage, designed to grant rights to access products, services, or certain privileges within a blockchain network. However, the growth of this market comes with risks—both in terms of investor protection and financial stability—prompting the government to issue laws and regulations for strict oversight.

The main law governing Utility Tokens in Thailand is the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), under the supervision of the Securities and Exchange Commission (SEC). The purpose of this law is to ensure transparency, prevent money laundering, and protect investors. It classifies digital assets into two main categories:

  • Cryptocurrency – used as a medium of exchange.

  • Digital Token – subdivided into Investment Tokens, for fundraising and granting rights to benefits from projects, and Utility Tokens, for accessing products, services, or privileges.

Utility Tokens come in two forms: ready-to-use and prepaid (requiring future development). The latter carries higher risk and is often used for fundraising, so it is subject to stricter regulation than tokens that can be used immediately, such as concert tickets in token form or tokens redeemable for services.

Rules for Issuing and Offering Utility Tokens

For Utility Tokens that cannot be used immediately, issuers must apply for approval from the SEC with filing documents and a prospectus. They must also undergo review by an ICO Portal licensed by the SEC, which must have investor screening systems and anti-money laundering measures to ensure investors receive accurate and complete information. Once approved, issuers must comply with requirements such as:

  • Retail investors may invest up to 300,000 THB per project.

  • Institutional and high-net-worth investors may invest more but must meet qualification checks.

Additionally, digital tokens cannot be used directly as a means of payment. Holders must first convert them into Thai Baht, as seen in the TouristDigiPay project, a collaboration between the Ministry of Finance, the Bank of Thailand, and the SEC.

For ready-to-use tokens, although they fall under the legal definition of digital tokens, they are not considered investment assets because holders can immediately exercise their rights, such as redeeming goods without waiting for third-party actions. Therefore, offering these tokens does not require prior approval.

Penalties and Observations

Issuing Utility Tokens without approval or offering them without going through an ICO Portal carries civil and criminal penalties, such as multi-million-baht fines and imprisonment under the Digital Asset Business Decree.

Despite strict regulations, Utility Tokens remain an important tool for businesses building digital ecosystems, such as granting platform privileges or creating transparent loyalty programs via blockchain. However, businesses must consider compliance costs, and investors must understand the risks before making decisions.

 ⚠️ Disclaimer: Cryptocurrency and digital token involve high risks; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.

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