Thailand proposes new Electronic Transactions Act to support digital commerce

The Thai Cabinet has been presented with a new draft of the Electronic Transactions Act to modernize legal frameworks for digital commerce. The proposed legislation aims to align national laws with the UNCITRAL Model Law to support international trade and reduce disputes.

Key provisions include the legal recognition of electronic signatures and electronic seals when conducted through reliable methods. The draft also introduces support for automated contracts, allowing systems to execute legally binding agreements without human intervention, provided the system's operation is predictable.

Furthermore, the act will introduce a category for electronic negotiable instruments, such as bills of exchange, promissory notes, and checks, giving them the same legal standing as paper documents. To ensure security, the law will implement a risk-based regulatory approach for seven types of service providers, including identity verification, electronic signature services, and data storage services.