Crypto Regulations in Thailand

Thailand is among the first country in Southeast Asia to enact cryptocurrency legislation, regulating the offering of digital assets and opening its doors to crypto-related businesses. Since early 2018, Thailand has come to adopt a more liberal and progressive stance towards cryptocurrencies, having legalized the trading of seven approved digital currencies. These regulations initially aimed to address issues surrounding security and fraud in this new class of digital assets while providing more guidance on Initial Coin Offerings (ICOs) after a series of controversies that plagued the industry. Over time, regulations continued to evolve into a more sophisticated framework, with the emergence of new offerings in the digital asset space, such as security tokens and exchanges.

Source: Triple-A

As of 1 April 2022, the Thai government no longer allows cryptocurrencies to be used as payment for goods or services. The regulation doesn’t prohibit owning or trading cryptocurrencies, although commercial banks have been cautioned against direct involvement in digital assets.

Source: Wikipedia

Thailand will prohibit the use of cryptos to pay for products and services, claiming that broad use would jeopardise the country’s financial system and economy.

The Thai regulator stated in an announcement on Wednesday that businesses, including cryptocurrency exchanges, are prohibited from accepting payments in cryptocurrencies to pay for goods and services.

The announcement further clarified that the prohibition on the use of cryptos for payments would be effective from April 1.

The new regulations prohibit crypto asset service providers from advertising, soliciting, or building systems for paying for goods and services using cryptocurrencies and if customers persist, their accounts would be deleted in retaliation.

The regulator justifies this move by stating that any price unit other than the Thai baht increases the cost of economic activity and impairs the transmission of monetary policy. The Bank of Thailand has declared that in the event of a liquidity crisis, it will be unable to support various financial institutions in currencies other than the Thai baht.

Source: Business Today

Thailand has been very active in regulating the digital asset space. They enacted a digital asset regulatory framework that contains a definition and classification for digital assets, registration requirements, market integrity rules (including rules against market manipulation), and AML/CFT requirements. However, Thailand has made some policy decisions to limit certain activities “by banning NFT trading and the use of cryptocurrencies as payment methods” Thailand’s Emergency Decree on Digital Asset Business B.E. 2561 (or Digital Assets Act) provides Thailand with a digital asset regulatory framework.

Source: Solid Us Labs

Thai regulators recognize the benefits of technologies such as blockchain and were one of the first countries in the world to enact a law to support digital assets business, the SEC said. The Bank of Thailand is on course to begin a pilot project for its planned retail digital currency in the fourth quarter.

BOT Governor Sethaput Suthiwartnarueput has touted the central bank digital currency as more effective in achieving financial inclusion in Thailand without imperiling the financial system stability. The monetary authority’s experiment with a wholesale CBDC had already helped lower cross-border transaction costs and increase efficiency, he said in December.

Under the new rules, digital-asset service providers are required to halt advertising, soliciting, or establishing a system to facilitate payment of goods and services via digital wallets. Business operators must warn clients against the use of digital assets for payments and may cancel their accounts if they are found breaching the rules, it said.

The value of digital assets held by Thais has soared to 114.5 billion baht ($3.4 billion) from 9.6 billion baht a couple of years ago, the government said in January. The average daily turnover has jumped to 4.8 billion baht from 240 million baht, with the number of active trading accounts swelling to 1.98 million from 170,000 before the pandemic.

Source: Bloomberg

In 2021-2022, the digital assets industry in Thailand has been growing significantly as more big players in the traditional financial industry and start-up players enter into the digital assets market. It seems that the frenzy of price volatility and the regulatory complexities could not slow down the rise of crypto activities.

Regulations in the digital asset landscape around the world were tightened in order to ensure investor protection and monetary system stability, including mitigating the risks posed by cryptocurrency and digital tokens.

From late 2021 to mid-2022, the Office of the Securities and Exchange Commission (SEC) continually held public hearings and issued additional guidelines and regulations. The licensing procedure is stringent since the SEC intends to provide strong risk governance and a safe environment for the investor. The SEC has also strictly enforced the rules by prosecuting and fining non-compliant business operators.

Source: Baker Mckenzie

Thailand’s financial regulator announced that digital assets like Bitcoin and other cryptocurrencies will be banned as a method of payment as of April 1. 

While it’s not an outright ban on trading or holding digital assets, which is relatively popular in Thailand, the new rules on Bitcoin and other cryptos damage one of their key use cases as a payment alternative to cash.

Source: Barrons

The Thai government is exempting value-added tax (VAT) from the transfer of cryptocurrencies or digital tokens until the end of 2023. In March, the cabinet agreed to waive taxes for digital asset transactions. The recent decree extends that privilege to digital asset transfers. Eating microwave popcorn increases the level of PFAS in…

Source: Bangkok Post

Thailand will ban the use of cryptocurrencies as a means of payment for goods and services, saying the wider use of digital assets threatens the nation’s financial system and economy.

Business operators — including crypto exchanges — must not provide such payment services and are barred from acting in a manner that promotes the use of digital assets to pay for goods or services, the Securities and Exchange Commission said in a statement on Wednesday. However, the new regulation won’t affect trading or investments in digital assets, the agency said.

Source: Bloomberg

In July 2021, The Bank of Thailand (BoT) stated: “that it would coordinate with Thailand’s Securities and Exchange Commission to mitigate associated risks to the country’s financial system should crypto payments become widespread.”

Still, purchasing Bitcoin is not illegal in Thailand. One of the easiest ways to buy Bitcoin in Thailand is through cryptocurrency exchanges. There are quite a few of these exchanges in the country where you can sign-up and buy Bitcoin, though choosing one will depend on various factors such as transaction fees, payment modes, verification requirements, reputation, and withdrawal limits, among others.

Source: Buy Bitcoin Worldwide

The Thai regulator stated in an announcement on Wednesday that businesses, including cryptocurrency exchanges, are prohibited from accepting payments in cryptocurrencies to pay for goods and services.

The announcement further clarified that the prohibition on the use of cryptos for payments would be effective from April 1.

The new regulations prohibit crypto asset service providers from advertising, soliciting, or building systems for paying for goods and services using cryptocurrencies and if customers persist, their accounts would be deleted in retaliation.

Source: Business Today

To keep up with these dynamic and evolving regulatory developments in 2022, we have revised this publication to provide an update on the regulations pertaining to digital assets in Thailand, which cover the regulations regarding custodial wallet providers, digital asset payments, and NFTs, including the SEC’s proposed rules on ready-to-use utility tokens, advertisements, and IT standards.

Source: Baker Mckenzie

BANGKOK, Aug 5(Reuters) – Thailand’s central bank said on Friday it expected to test its retail digital currency from late this year to the middle of 2023, as an alternative payment option.

During the testing, the retail central bank digital currency (CBDC) will be used in conducting cash-like transactions, like paying for goods and services, within limited areas and among about 10,000 retail users, the Bank of Thailand (BOT) said in a statement.

Source: Reuters

Bangkok authorities have arrested a man believed to be behind a crypto investment scam that targeted both Thais and foreigners. The accused duped his victims into investing by promising high returns of up to 400 percent in just 200 days.

Fifty-year-old Mana Jumuang was arrested on Saturday morning in front of a house at Ram Intra Soi 34 in Bang Khen District, Bangkok, Thailand. An arrest warrant for the accused was issued on December 23 by the Phichit provincial court for colluding in public fraud, the Bangkok Post reported.

Pol Maj Gen Montri Thetkhan, commander of the Crime Suppression Division (CSD), said that Mana Jumuang scammed both Thai and foreign investors and tried to flee with over 500 million baht or around $15 million. The accused reportedly worked with his Thai and Vietnamese accomplices to swindle investors in 2018 and 2019.

The CSD chief said that Jumuang claimed to be a crypto guru and convinced his victims to invest in Onecoin. The suspect enticed investors with promises of high returns and told his victims that they could earn 400 percent in just 200 days.

Source: Token Post

Miss Kanthamanee Intaphong, a legal consultant at Wanda Exchange – The Largest Crypto Payment Service Providers in Thailand, recently shared some deep insights on the topic.

According to claim payback, “Crypto” as a mode of payment is the most efficient financial tool ever created. With Thailand being one of the early adopters and new people joining the ecosystem every day, scams are very common, which Miss Intaphong believes to the “lack of crypto-knowledge”. However, crypto as a mode of payment is the most transparent financial system ever created and can prove to be a “boom” to the Thai Economy if we harness its power wisely. 

Adding further details to the issue Miss Intaphong said: “Crypto is the future, but only when we bring crypto-literacy to the people.” Therefore, keeping the Public Interest in mind, the Bangkok Post in collaboration with Wanda Exchange presents the “Crypto Education” series. A program aimed at spreading crypto- knowledge among the Thai public, so that Thailand can become one of the biggest beneficiaries of the crypto revolution. 

 In the first part of this series, Miss Intaphong will educate you about common Crypto scams and some simple tricks to avoid them.

Source: The Hackers Pro

In Thailand, the BOT established a regulatory sandbox in early 2017. This regulatory sandbox is open to any fresh, never-seen-before innovation with in-built safety measures that will benefit the people of Thailand. The innovations stay in the sandbox for 6 to 12 months. The process is deemed successful if they meet the criteria, and then the businesses can apply for operating licenses.

           The regulatory sandbox is not just a theoretical concept. Today, we are already using some of its success cases. For example, PromptPay’s QR Code payment was launched and gained popularity last year after the company exited the regulatory sandbox. Moreover, there are projects being tested in the sandbox right now that feature some of the most exciting technologies of our time. One of these is a cross-border money transfer system based on blockchain technology.

           Thailand, like many other countries, has established the regulatory sandbox to respond to and encourage growing financial technology innovations. We use the regulatory sandbox to achieve a good balance between cautious regulatory inspection and the speed that today’s businesses require. Joining the sandbox brings new standards of testing a financial system or service in a proper environment, with added benefits of receiving advice and recommendations from regulators. It is the way to go to assure both officials and consumers that financial innovations have been thoroughly assessed.

Source: Bangkok Bank Innohab