THAILAND Trends and Developments Contributed by: Jessada Sawatdipong, Sarunporn Chaianant and Supawich Nimmansomboon, Chandler Mori Hamada
economy, it is not expected to significantly increase risks to financial stability as lending conditions remain tight, and banks are continuing to exercise caution in granting loans. The Committees emphasised that this easing is tem- porary, since Thailand’s LTV rules are already rela- tively relaxed compared to international standards. Maintaining LTV requirements remains important to ensure sound lending practices, prevent borrowers from taking on debt beyond their repayment capacity and reduce risks of speculative activity in the property market. A key measure under the temporary relaxation is the setting of the LTV cap at 100% for housing loans in the following cases: • where security is valued at less than THB10 million, starting from the second house loan onwards; and • where security is valued at THB10 million or more, starting from the first house loan onwards. This relaxation applies temporarily to loan contracts signed between 1 May 2025 and 30 June 2026. Guiding Principles on AI Risk Management The BoT has issued draft Guiding Principles on Artifi- cial Intelligence Risk Management, setting out a regu- latory framework for the responsible use of AI in the financial sector. Recognising the increasing adoption of AI in banking and payment services, the guidelines aim to balance innovation with the need to safeguard financial stability, ensure consumer protection, and maintain customer confidence in the financial system. The draft applies to financial institutions governed by the Financial Institutions Business Act as well as to payment service providers under the Payment Sys- tems Act. It supplements existing supervisory frame- works on IT risk management, third-party risk, data governance and market conduct by addressing risks specific to AI technologies, such as autonomous learning and complex decision-making processes. The framework is organised into two principal com- ponents: (i) governance and (ii) development and security. Governance requires institutions to establish
clear oversight mechanisms, including accountability of directors, a clear scope of their roles and respon- sibilities throughout the AI life cycle and regular pol- icy reviews. These structures are expected to reflect internationally recognised principles of accountability, transparency and ethics. The component on development and security empha- sises effective risk management at every stage of the AI life cycle, from design and training to deployment and monitoring. Institutions must ensure the quality and integrity of training data, mitigate potential biases and maintain resilience against cyber threats such as adversarial attacks or data poisoning. Furthermore, outcomes produced by AI systems should be explain- able, reliable and consistent among groups of cus- tomers. The BoT opened the draft for public consultation in June 2025, inviting comments from financial ser- vice providers and other stakeholders. The initiative reflects the BoT’s intention to align domestic super- visory standards with global best practices, fostering innovation while maintaining prudence, accountability and stability within Thailand’s financial system. Turning Crypto in to Thai Baht to Boost Tourism The TouristDigiPay project has been introduced as a new option for foreign tourists who hold digital assets (cryptocurrencies) to conveniently convert them into Thai baht for use in Thailand. The system operates through licensed digital asset service providers and e-money operators under the supervision of the SEC and the BoT. It will initially be launched in a regulatory sandbox for 18 months, starting in the fourth quarter of 2025, allowing authorities to test and evaluate the model before wider adoption. The mechanism is designed to be straightforward: tourists transfer their crypto to an approved provider, convert it into Thai baht and receive the funds in an e-Money account under their own name. They can then use this e-Money to pay merchants in Thailand, while merchants only receive Thai baht – not crypto- currency. Tourists may reconvert unused e-money into digital assets, which will be transferred back to their original digital wallet upon return.
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