There does not appear to be any current legislation on smart contracts, but there are expected to be developments this year.

E-Framework

Electronic signatures are recognized. Under Thai law, a written signature is not necessarily required for a valid contract - contracts are generally valid if legally competent parties reach an agreement, whether they agree verbally, electronically or in a physical paper document (Sections 7, 9, 13 of the E-Transactions Act). The E-Transactions Act specifically confirms that contracts cannot be denied enforceability merely because they are concluded electronically. To prove a valid contract, parties sometimes have to present evidence in court. Leading digital transaction management solutions can provide electronic records that are admissible in evidence under Section 11 of the E-Transactions Act, to support the existence, authenticity and valid acceptance of a contract. (From DocuSign here.) (See the Electronic Transactions Act of 2001.) (See the Electronic Transactions Act of 2010.)

News

The Thai Bond Market Association (TBMA) will deploy a smart contract and blockchain-driven platform solution on its registrar services platform, according to the local Bangkok Post news agency.

The TBMA Chairman announced that the new registrar platform will be deployed across the regulatory testing infrastructure by the end of 2018, and will be the first Fintech solution to be implemented in both the Thai Securities and Exchange Commission (“SEC”) and the Bank of Thailand (“BoT”) regulatory frameworks. The platform is to be constructed on a smart contract platform with a private blockchain, which will reportedly give users a digitalized settlement database, a bond subscription system, and bond transaction authentication. It will also enable issuers, regulators, companies, and investors to gain access to interest rates, payments, and other bond data. TBMA will continue to expand the platform and will ultimately launch the Bond Coin, a trading and clearance system to be rolled out in 2019. Chaitat Prachuabdee, the TBMA’s Executive Vice President, also announced that the body is currently investigating the possibility of issuing its own “service settlement currency” to back up the digitalized bond issuance solution. (From CryptoDailyGazette here.) (See the Thai Civil and Commercial Code on contract formation.) (See the Thai Civil and Commercial Code on contract legal effect.)

Sources

• (From DocuSign here.)
• (See the Electronic Transactions Act of 2001.)
• (See the Electronic Transactions Act of 2010.)
• (From CryptoDailyGazette here.)
• (See the Thai Civil and Commercial Code on contract formation.)
• (See the Thai Civil and Commercial Code on contract legal effect.)