Thailand has released a draft amended Electronic Transactions Act (ETA), which aims to overhaul the current version of the law from 2001 to correct its enforcement limitations and update the ETA to be consistent with current electronic transactions practice. The draft ETA is open for public comment until December 20, 2024. The draft ETA introduces a new supervisory scheme that (1) recognizes electronic transactions executed by both current and future technologies without having to enact regulations recognizing the technology, (2) replaces the licensing, registration, and notification scheme for electronic transaction service providers with a trust-mark scheme, and (3) introduces a new mechanism to regulate electronic transaction service providers. The major amendments under the draft ETA address: Relationship with other relevant laws. The draft ETA is designated as the primary law governing electronic transactions, whether between private parties or between private parties and the state. However, if specific laws—including those on electronic administrative procedures—prescribe methods for conducting particular electronic transactions, those laws will prevail. Definitions. The draft ETA revises some existing terms, such as “transaction,” which is now more clearly defined as “any act relating to civil or commercial activities, including administrative procedures, administrative contracts, and any other actions by government agencies or officials.” It also introduces new definitions, such as “biometric data,” “automated system,” and “electronic seal.” Electronic transaction reliability. The draft ETA now clearly provides that electronic transactions executed using a method or an electronic method stipulated by the Electronic Transactions Development Agency (ETDA) as reliable are themselves presumed to be “reliable.” In case of a challenge over the implementation of a certified method or certified service, the challenging party bears the burden of proof and related expenses. Electronic transferable instruments. The draft ETA adopts the UNCITRAL Model Law on Electronic Transferable Records (ETRs) in recognizing ETRs (e.g.,

Thailand has released the set of principles that will form the official draft Platform Economy Act (PEA) for a public hearing period that runs until December 15, 2024. The PEA is likely to be positioned as a general or overarching law for digital intermediary services and digital platform service businesses. In January 2024, an early, unofficial version of the proposed law had been circulated among a limited group of operators in certain industries to get comments for the working group charged with the PEA’s development. Now, however, the proposed principles that will underpin the official draft PEA have been released publicly to gather comments, feedback, and suggestions from any interested stakeholders. The principles of the draft PEA cover two main areas: user protection and fair competition. The key details in these two areas are outlined below. User Protection The main regulator supervising the law’s user protection elements will be the Electronic Transactions Development Agency (ETDA). The draft PEA is expected to impose user protection obligations on service providers based on their nature, size, and risk level. The principles set out a three-tiered classification system for service providers that will be covered under the draft PEA, as detailed below, ordered from fewest obligations to most: Intermediary Service Provider: This describes a service provider acting as an intermediary between a sender and recipient of information on a computer network, the internet, or a telecommunications network. Service providers likely to fall under this category include cloud service providers and web hosting providers. Intermediary service providers may be further categorized into the following subtypes: Mere conduit service providers; Caching service providers; Hosting service providers; and Other service providers as prescribed in ministerial regulations. Online Platform: This refers to an intermediary service provider offering data storage services that connect various types of users to

In recent years, Thailand has taken significant steps to regulate and integrate digital assets into its financial ecosystem. This article explores the regulatory framework governing digital asset businesses in Thailand, focusing on the key legislation, regulated activities, and recent developments in this rapidly evolving sector. Regulatory Environment In 2018, Thailand enacted the Emergency Decree on Digital Asset Businesses, marking a pivotal moment in the country’s approach to cryptocurrencies and digital tokens. This decree, supervised by the Securities and Exchange Commission (SEC) and the Ministry of Finance, provides a comprehensive regulatory framework for both the primary and secondary markets of digital assets. For the primary market, the decree regulates the issuance and sale of digital assets through initial coin offerings (ICOs). A key feature of this regulation is the requirement for ICOs to be conducted through SEC-approved ICO portals. This approach aims to provide a structured and supervised environment for companies seeking to raise funds through digital token sales. In the secondary market, the decree outlines the regulatory framework for various digital asset intermediaries, including digital asset exchanges, brokers, dealers, advisory services, fund managers, and custodians. In implementing its digital asset-related policies, the SEC imposes ongoing obligations on licensed digital asset intermediaries. These include restrictions on the listing of certain digital assets on digital asset exchanges, and limitations on intermediaries facilitating digital assets as a means of payment. Regulatory Trends and Outlook The SEC has demonstrated a commitment to regularly revising its digital asset regulations to keep pace with global trends and market developments. A notable example of this approach is the SEC’s efforts to refine the classification of nonregulated ready-to-use utility tokens by dividing these tokens into two groups: Group 1: Ready-to-use utility tokens issued for consumption purposes or as a digital representation of a certificate (e.g., NFTs with