Thailand’s Proposed Draft Electronic Transactions Act
1. Introduction
A member of the House of Representatives, together with other members, has proposed the Draft Electronic Transactions Act, B.E. .... (the “Draft Act”), which would replace the existing Electronic Transactions Act, B.E. 2544 (2001), as subsequently amended, and modernize Thailand’s electronic transactions framework. The Draft Act is currently subject to public consultation until 7 October 2026.
The existing legislation has been in force since 2001 and, despite several amendments, has not kept pace with the rapid development of technologies used in electronic transactions. The United Nations has also developed new model laws to support electronic transactions in a broader range of digital contexts. The Draft Act aims to modernize Thailand’s electronic transactions framework and align it with technological developments and current international rules and standards, with the goal of enhancing the credibility of electronic transactions, increasing convenience, strengthening security, building confidence, reducing costs for individuals and businesses, improving quality of life, supporting Thailand’s digital economy, and strengthening the country’s competitiveness.
2. Key Provisions of the Draft Act
| Topic | Description |
| Repeal and Replacement of Existing Legislation | The Draft Act will repeal and replace the Electronic Transactions Act, B.E. 2544 (2001), as amended, with a single consolidated statute (Draft Section 3). |
| Objective and Scope of Application | The Draft Act aims to promote the use of electronic means as the primary method of conducting transactions in place of traditional paper-based methods, while enhancing legal certainty and confidence in the legal effect of electronic transactions at every stage. However, it does not prohibit traditional paper-based transactions (Draft Section 4).
The Draft Act applies to all types of transactions under any law, whether between private parties or between private parties and the government, unless a specific law prescribes a particular method for electronic transactions (Draft Section 6).
Certain matters are excluded by Royal Decree, including those requiring personal appearance before officials, those requiring expression of consent before officials, and those that, by their nature, are not yet suitable for electronic transactions (Draft Section 5). |
| Legal Status of Electronic Data and Transactions | Electronic data handled in accordance with the Draft Act have legal effect, and electronic transactions properly conducted in accordance with the Draft Act are legally binding and enforceable. Electronic data and printouts of electronic data have the same legal status as documents or evidence under the Civil Procedure Code, Criminal Procedure Code, and other laws. When the reliability of electronic data is in question, the court shall consider factors such as the method used to create, store, or communicate the data; the integrity and completeness of the data; the methods used for identity verification; and all relevant circumstances. A party challenging the reliability of electronic data bears the burden of proof and the cost of doing so (Draft Sections 10-26). |
| Expression of Intent, Data Transmission, and Electronic Contracts | A person’s expression of intent may be made in the form of electronic data. No person may deny the legal effect or enforceability of an expression of intent solely because it was made electronically. Where the sender of data receives confirmation from the recipient, it is presumed that the recipient has received the electronic data as transmitted. Offers and acceptances for the purpose of forming contracts may be made electronically, and contracts formed through automated systems, whether between automated systems or between an automated system and a natural person, shall not be denied legal effect solely because no natural person reviewed any part of the process or intervened in it (Draft Sections 27-43). |
| Electronic Signatures and Electronic Seals | Where the law requires a signature, an electronic signature made using a reliable electronic method or a method prescribed by the Electronic Transactions Development Agency (“ETDA”) shall be deemed to satisfy that requirement. The Draft Act sets out criteria for evaluating the reliability of electronic signature methods, including the security of identification methods, the level of control the signatory has over the signature creation data, and the detectability of any alterations. Similarly, where the law requires a company’s seal, an electronic seal made using a reliable or prescribed method satisfies the requirement. Electronic signatures created abroad and certificates issued abroad are recognized if the systems used are no less reliable than those required under the Draft Act (Draft Sections 20-31). |
| Electronic Negotiable Instruments | A significant addition to the Draft Act is the recognition of electronic negotiable instruments (transferable records). Electronic negotiable instruments have the same legal effect as paper-based negotiable instruments, and their legal effect may not be denied solely because they are in electronic form. The Draft Act specifies the characteristics of electronic negotiable instruments, including requirements for the use of reliable electronic methods for their creation, transfer, endorsement, amendment, and destruction. It also provides for the conversion between paper and electronic forms, delivery of possession through transfer of control rights, and endorsement by electronic means (Draft Sections 44-50). |
| Electronic Transaction Services | The Draft Act defines electronic transaction services as including: • identity verification services;
Service providers must maintain reliable systems and operational processes, ensure that personnel involved in providing the services are trustworthy, implement risk management measures, and provide channels for submitting complaints and notifications (Draft Sections 51-58).
Service providers wishing to be certified as trustworthy may apply to ETDA. |
| Digital Identity Verification System | The Draft Act provides a framework for digital identity verification through an electronic network linking individuals and government agencies. Where a reliable electronic method or a method prescribed by ETDA is used for digital identity verification, the verification shall be deemed valid. Operating a digital identity verification business may require a license under a Royal Decree, with applicable rules modeled on the regulatory framework for electronic transaction service businesses. |
| Transitional Provisions | The Draft Act includes transitional provisions to support the issuance of subordinate legislation during the initial implementation period and to protect the rights of electronic transaction service providers licensed under the existing law (Draft Sections 59-63). |
3. Expected Timeline and Impact
The Draft Act is currently undergoing the public consultation. If enacted, it will take effect 120 days after publication in the Royal Gazette.
The Draft Act represents a comprehensive overhaul of Thailand’s electronic transactions framework. Businesses operating in the digital commerce, financial services and technology sectors may be affected by the updated requirements for electronic signatures, electronic data handling, and digital identity verification. In particular, the new provisions on electronic negotiable instruments could create significant opportunities for companies involved in trade finance, supply chain management and financial technology, by enabling the digitization of bills of exchange, promissory notes, and other transferable instruments.
Government agencies will need to adapt their systems to accommodate the expanded scope of electronic transactions in dealings with the public, and electronic transaction service providers should review their compliance frameworks in light of the new regulatory requirements.
4. Conclusion
The Draft Electronic Transactions Act, B.E. .... represents a significant step in Thailand’s efforts to modernize its legal framework for the digital economy. By aligning with international standards and addressing emerging technologies, the Draft Act seeks to balance innovation with legal certainty and public confidence in electronic transactions.
Chandler Mori Hamada will closely monitor these legal developments and keep you updated on the Draft Act’s progress and enactment. If you have any questions in relation to the issues raised in this newsletter, please contact the authors listed above.
