How to crypto 101: Thailand

Thailand is becoming a major player in the digital asset space. With its active regulators and growing blockchain scene, the country is building a legal framework to support crypto innovation. While rules are still evolving, Thailand offers clearer guidance than many of its neighbors. This guide explains how Thailand crypto regulations work, what businesses need to know, and why the Thai crypto market is gaining attention from startups, investors, and global platforms seeking regulatory clarity in Southeast Asia.

Thailand’s official position on digital assets

The Thai government has taken an active role in shaping the country’s digital asset policies. Unlike many jurisdictions that struggle to define cryptocurrencies, Thailand has formal definitions backed by law. Under the Emergency Decree on Digital Asset Businesses, “cryptocurrency” is described as an electronic unit designed to serve as a medium of exchange. It includes anything that can be traded for goods, services, or other digital assets. A “digital token” is defined separately, depending on its function. Some digital tokens grant investment rights in projects or companies, while others allow holders to access services or products. These legal definitions show how seriously Thailand crypto regulations treat clarity and scope.

Thailand’s central bank, the Bank of Thailand (BOT), remains cautious. In a 2021 statement that still guides its current stance, the BOT discouraged the use of cryptocurrencies for daily payments. The bank warned that volatility and lack of legal tender status pose risks to consumers and the economy. At the same time, BOT is not anti-innovation. It has openly supported blockchain exploration and continues to work on a retail Central Bank Digital Currency (CBDC). This project reflects Thailand blockchain regulation in action, aiming to create secure and reliable crypto payment systems. A pilot test involving Thai banks and selected users was completed in 2023, and further updates are expected.

The BOT is also participating in mBridge, a project that links central banks across countries to test cross-border payment systems. These efforts are part of a wider Thai blockchain innovation strategy that focuses on infrastructure, not speculation. While private cryptocurrencies remain under tight control, Thailand crypto regulations support public-led digital finance projects that are safe and scalable. The government’s message is clear: embrace digital payments, but do so under controlled and trusted systems.

Digital tokens receive more favorable treatment than cryptocurrencies used for payments. Thai regulators see them as financial instruments that can support long-term fundraising and investment.

The Securities and Exchange Commission (SEC) has created precise rules under the Thai SEC crypto guidelines. These rules were updated in 2024 to lift the investment limit for retail investors in asset-backed ICOs. This includes projects tied to real estate or public infrastructure.

Previously, individuals were capped at 300,000 baht per project. Now, the cap is gone in certain cases, making it easier for the public to participate in structured, asset-based digital offerings.

The SEC has also opened new opportunities for custodial wallet providers. Companies with experience in asset custody, such as listed firms or financial subsidiaries, can now apply to handle digital tokens, provided they meet specific independence criteria. This change reflects a more flexible and scalable approach to Thailand crypto regulations, aiming to improve security and professionalism in the industry. It also signals growing confidence in digital asset infrastructure.

At the same time, the SEC now requires crypto businesses to seek approval before launching unrelated services. This is to ensure better oversight and reduce operational risk. Businesses are also prohibited from partnering with unlicensed operators. These updates are key examples of how Thailand crypto regulations continue to evolve with the market or blockchains they support. They combine a strong regulatory backbone with room for digital growth, which helps make Thailand an increasingly important player in the global crypto space.

Legal framework for crypto trading and services

In Thailand, cryptocurrencies are not banned. People are free to buy, sell, hold, and invest in digital assets. Still, that freedom comes with structure. The government regulates activities tied to crypto assets through a licensing system. Exchanges, brokers, dealers, and similar businesses are classified as “digital asset business operators” under the Emergency Decree. This setup ensures oversight without blocking innovation, forming the backbone of Thailand crypto regulations.

The Securities and Exchange Commission plays a leading role in keeping the system stable. In line with the Bank of Thailand’s cautious stance, the SEC has drawn a firm line when it comes to crypto being used as everyday money. It currently bans any digital asset business from helping people use crypto to pay for goods or services. This includes wallet providers, advertising for payment features, or creating any tools that could act like a crypto payment system. These measures reflect the country’s concern over volatility, misuse, and lack of legal tender status. While this may sound strict, it aligns with broader efforts around crypto compliance Thailand and shows that regulators want crypto to stay in the zone of investment, not payment.

At present, this rule only applies to businesses directly listed under SEC rules. But change is coming. As of August 2024, the SEC is working on a draft law to include custodial wallet services in this payment restriction. This move would bring even more consistency to Thailand crypto regulations. By closing loopholes and regulating support services, Thai authorities aim to prevent indirect workarounds. While trading and investing remain legal and relatively open, payment applications are carefully limited. This regulatory path reveals how Thailand balances permission and control in a fast-growing crypto environment.

How crypto taxation works in Thailand

In Thailand, crypto earnings are treated as taxable income. The Revenue Code includes profits from holding, transferring, or receiving cryptocurrency or digital tokens. If a person earns more from selling tokens than they spent to buy them, that profit must be reported. The same applies to any share of profits or benefits gained just by holding crypto assets. When digital assets are paid out as income, they face a 15% withholding tax. This shows how seriously Thailand crypto regulations integrate taxation into the broader legal structure.

However, the system also provides relief in certain cases. Transfers made through licensed exchanges are not subject to value-added tax. This exemption helps investors and traders avoid double taxation and encourages them to use regulated platforms. Similarly, any digital currency created by the Bank of Thailand and issued during specific timeframes has been exempt from VAT. These decisions support Thailand blockchain regulation and reflect the government’s intent to promote safe digital finance tools.

Corporate players also benefit from targeted exemptions. Juristic entities issuing investment tokens under proper rules do not have to pay corporate income tax or VAT on those offerings. These incentives reflect a strategic effort to align Thailand crypto regulations with innovation and market growth.

KYC and identity checks under Thai AML rules

Crypto platforms in Thailand are under close watch when it comes to user identity. They’re not treated like tech startups - they’re treated like financial institutions. That means they follow the same rules as banks, at least when it comes to anti-money laundering. It might sound strict, but it’s a core part of Thailand crypto regulations, which aim to balance access with security. If someone wants to use a digital asset service, they’ll need to prove who they are. It’s that simple.

This process starts before the first trade ever happens. Users must show valid ID, and platforms must verify that information using trusted sources. But it doesn’t stop there. If the user lives in a high-risk country or has a complicated financial background, the rules get tougher. These platforms aren’t just asked to check names - they’re expected to understand where the money is coming from, why it’s moving, and who benefits in the end. That’s where the idea of enhanced checks comes in. Some customers may need senior approval just to be onboarded.

But even after all of that, the job’s not done. Platforms must keep monitoring transactions over time. Are they consistent with what the user said they’d be doing? Do things add up? If not, a report might need to be filed. Thailand crypto regulations make it clear that crypto businesses can’t look the other way. They have to stay alert. It’s not just about catching crime - it’s about building trust. And in a market that’s still finding its way, that trust makes all the difference.