THAILAND LAW AND PRACTICE Contributed by: Wongsakrit Khajangson, Panupan Udomsuvannakul, Koraphot Jirachocksubsin and Pitchaya Roongroajsataporn, Chandler Mori Hamad a
tokens in the absence of a separate entity, while pre - serving the ban on payment use. 10.13 Stablecoins Stablecoins are not subject to a dedicated regulatory framework in Thailand. Their regulatory treatment depends on their structure, reference assets and intended use, particularly whether they are designed to function as a means of payment. The BOT applies a functional and risk-based approach. Stablecoins backed by the Thai baht and used as a medium of exchange may fall within the scope of the Payment Systems Act and be characterised as e-money. In such cases, the issuer or service pro - vider is required to consult with and obtain approval from the BOT prior to commencing operations, and will be subject to requirements comparable to those applicable to e-money services, including risk man - agement, anti-money laundering and consumer pro - tection measures. Other types of stablecoins, including those backed by foreign currencies or other assets, or those relying on algorithmic stabilisation mechanisms, are assessed on a case-by-case basis. Stablecoins that are struc - tured or promoted in a manner that effectively substi - tutes the Thai baht may be considered unlawful under the Currency Act B.E. 2501 (1958). At present, there are no statutory requirements or reg - ulations specifically applicable to stablecoins, such as mandatory reserve composition or redemption at par. The BOT continues to monitor developments in this area and has indicated its openness to innovation. As a recent development, in 2025, the SEC added USDC and USDT to the list of permitted cryptocurren - cies for certain regulated transactions, while the BOT continued programmable payment testing for Thai baht-backed stablecoin use cases in the sandbox.
and the Government Financial Institutions Association introduced the “dStatement”, which is an exchange of financial statement data among banks to support digital loan applications. To date, open banking implementation in Thailand remains subject to feasibility studies, and the appli - cation programming interface standards have yet to be finalised. However, the BOT has taken significant first steps. In November 2023, the BOT published a consultation paper on “Open Data for Consumer Empowerment”, which aims to build a mechanism that allows con - sumers to exercise their rights to conveniently and securely transfer their data stored from one provider to another so that consumers can apply for and receive better services from any provider. 11.2 Concerns Raised by Open Banking All financial institutions need to comply with the PDPA, which came into full effect on 1 June 2022, in order to process personal data – for example, as regards the following: • notifying the processing of personal data; • obtaining prior consent from customers if the pro - cessing of their personal data does not fall under any lawful basis of processing (eg, performance of contract, legal obligation); and • providing channels for customers to exercise rights regarding their personal data. Fraud can occur in various businesses, including financial services and fintech, and may be subject to different laws in Thailand, depending on the nature of the fraud and the industry sector in which it occurs, such as digital assets, payment systems or insurance. Fraud under specific regulations shares fundamental elements with general fraud under the Criminal Code: • deception – a person lies or hides a fact that should be revealed; 12. Fraud 12.1 Elements of Fraud
11. Open Banking 11.1 Regulation of Open Banking
Thailand saw its first open banking initiative in January 2022 when the BOT, the Thai Bankers’ Association
873 CHAMBERS.COM
Powered by FlippingBook