The Securities and Exchange Commission (SEC) has clarified that the upcoming G-Token cannot be used as a means of payment and the intention is not that it be traded speculatively like other cryptocurrencies.
G-Token is a new digital financial instrument to be issued by the Public Debt Management Office (PDMO) under the Ministry of Finance. It is designed to raise public funds to help offset the government's budget deficit.
Jomkwan Kongsakul, deputy secretary-general of the SEC, said the G-Token would be issued through an initial coin offering (ICO) portal selected by the PDMO, with the Finance Ministry serving as the registrar.
Key details such as collateral, the issuance date, interest rate and maturity period would soon be announced by the Finance Ministry, as the official launch is scheduled for July this year.
Meanwhile, the SEC held a public hearing on the regulatory framework of G-Token yesterday to gather feedback. The public hearing is set to be completed within a 15-day period.
Investors who already have a digital wallet with an authorised digital asset exchange will be able to invest directly in G-Token. For those investing via securities firms, these intermediaries will keep the custody of the token with the digital wallet operator.
The G-Token will also be tradeable on a secondary market, providing investors with options to either trade or hold until maturity. This structure offers exit opportunities while maintaining a savings-oriented investment approach, Ms Jomkwan said.
"Unlike government bonds or equities, a G-Token is not a debt instrument, and therefore it falls under the Digital Asset Act, not traditional public debt laws," she said.
SEC secretary-general Pornanong Budsaratragoon said the regulator will supervise G-Token trading in the secondary market, focusing on anti-market manipulation measures, trading transparency, and investor protection.
Digital asset exchanges will be required to implement market surveillance systems, display warning signals, and provide indicative pricing to support investor decisions and facilitate arbitrage. Exchanges may also appoint market makers to enhance liquidity.
G-Token is the world's first government-issued digital token. It is a debt instrument issued by the Ministry of Finance and contributes to the national debt under the public debt ceiling.
"We want to ensure that G-Token serves as a useful, technology-driven investment innovation -- not merely a speculative tool. It must offer proper investment options, exit strategies, and investor protection," Mrs Pornanong stated, emphasising that the token should be seen as a form of savings.
Ms Jomkwan reiterated that G-Tokens cannot be used for direct payments. Trading will be restricted to listed exchanges only, with prohibitions on transferring tokens outside the exchange or across exchanges. These controls will be enforced via smart contract mechanisms.