Thailand Relaxes Regulations to Encourage Crypto Industry Participation in Carbon Markets
Thailand is revitalizing its carbon trading market by proposing regulatory amendments that allow carbon credits, carbon allowances, and renewable energy certificates to be tokenized via blockchain technology. This move opens opportunities for digital asset managers, brokerages, and traders to participate, advancing Thailand's goal to become a regional carbon trading hub.
Key Regulatory Changes
- SEC Amendments: The Thai Securities and Exchange Commission (SEC) revised its Utility Token framework in 2025 to exclude consumer-focused tokens from strict oversight, initially limiting carbon-related token trading.
- New Draft Proposal: The SEC now seeks to reintroduce blockchain-based carbon assets under revised regulations, citing blockchain’s potential to enhance market transparency and support Thailand’s 2050 carbon neutrality goals.
Benefits of Blockchain in Carbon Markets
- Transparency: Immutable records reduce greenwashing risks (e.g., double-counting or low-quality credits).
- Efficiency: Lower issuance costs and improved liquidity for carbon assets.
👉 Explore how blockchain transforms carbon trading
Risks and Challenges: Verra’s Concerns Over Double-Counting
While blockchain offers innovation, challenges persist:
- Outdated Data: Crypto platforms might fail to update retired credits, leading to invalid transactions.
- Verra’s Stance: The global certifier banned tokenized carbon credits in 2022 to prevent double-counting.
Thailand’s Carbon Market Revival Strategies
- New Trading Platform: SEC announced a dedicated carbon exchange (launching by 2027).
- Carbon Tax: Approved in March 2025 at 200 THB (~5.3 USD) per ton for oil products.
- ICE Partnership: Collaborating with Intercontinental Exchange (ICE) to leverage expertise from U.S./EU markets.
👉 Learn about Thailand’s green finance initiatives
FAQs
Q: How will blockchain improve Thailand’s carbon market?
A: By ensuring transparent, tamper-proof records and lowering transaction costs.
Q: Why did Verra ban tokenized carbon credits?
A: To avoid double-counting if retired credits remain tradable.
Q: What’s Thailand’s carbon tax rate?
A: 200 THB per ton, targeting oil and related products.
Sources: Bangkok Post, Taiwan Banker