Navigating the world of digital assets requires a clear understanding of the legal landscape. Thailand has been a proactive player in establishing a regulatory framework for this dynamic sector. This guide provides a comprehensive overview of the key laws, business requirements, and compliance procedures for digital assets in Thailand as of 2025.
Understanding the Legal Framework
The foundation of digital asset regulation in Thailand is the Emergency Decree on Digital Asset Businesses, B.E. 2561 (2018). This legislation created a new asset class—digital assets—and brought it under formal regulatory oversight. Since its enactment on 14 May 2018, any business operation involving digital assets must comply with this law.
It's crucial to determine whether a digital instrument falls under the scope of this Decree or other existing laws like the Securities and Exchange Act, the Payment Systems Act, or the Derivatives Act. Certain instruments, such as digital securities or e-money, are regulated under their specific legislations and not the Digital Asset Decree.
Defining Digital Assets: Cryptocurrencies vs. Digital Tokens
Thai law categorizes digital assets into two distinct types:
Cryptocurrency
- An electronic data unit created on an electronic system or network
- Functions as a medium for exchanging goods, services, rights, or other digital assets
- Includes other electronic data units as designated by the SEC
Digital Token
- An electronic data unit created on an electronic system or network
Determines either:
- The right of an investor to invest in any project or business (investment token)
- The right to receive specific goods, services, or other rights as agreed (utility token)
- Includes other electronic data units as designated by the SEC
The key distinction lies in their fundamental purpose: cryptocurrencies primarily serve as a medium of exchange, while digital tokens function as determinants of rights.
Proposed Definition Changes
Between July and August 2024, the SEC held public hearings regarding proposed amendments to combine the definitions of "Cryptocurrency" and "Digital asset" into "Crypto Asset." This proposed definition would require four elements:
- Issued and represented in digital form
- An intangible asset
- The owner has the right to control
- Transferable
Additionally, the Crypto Asset must have economic value and tech-neutral characteristics. The SEC also proposed creating a positive list of regulated Digital Assets under its supervision.
Regulatory Framework for Digital Token Offerings and Businesses
The Digital Asset Businesses Decree regulates two primary activities:
Offering of Digital Tokens to the Public
To offer regulated digital tokens to the public, issuers must:
- Meet specified qualifications
- Obtain Board of Directors approval before applying for SEC approval
- Secure approval from the SEC Office
- File a registration statement and draft prospectus with the SEC
- Conduct the offering through an approved portal
The Thai Revenue Department has provided tax exemptions for investment tokens in both primary and secondary markets, recognizing their similarity to traditional securities.
Exempt Offerings
Certain offerings are exempt from full registration requirements:
Limited Offering
- Offered to institutional or ultra-high net worth investors
- Offered to specific investors with relationship to issuer (max 50 people within 12 months)
- Total value not exceeding THB 20 million within 12 months
Ready-to-Use Utility Tokens
Tokens issued for consumptive purposes or as digital representation of certificates are exempt from SEC approval requirements, provided they're not intended for trading on licensed exchanges.
Specialized Token Offerings
The SEC has established specific frameworks for:
Real Estate Digital Tokens
- Underlying real estate must be complete and ready for use
- Investment value must not be less than 80% of project value or THB 500 million
- Requires thorough due diligence and appraisal
- Must establish a trust with specific requirements
Infrastructure Digital Tokens
- Covers assets ranging from transportation to energy and telecommunications
- Specific requirements vary based on project completion status
- Includes comprehensive investment and legal requirements
Sustainability-Related Digital Tokens
- Includes green tokens, social tokens, sustainability tokens, and sustainability-linked tokens
- Requires specific sustainability-related disclosures
- May need independent third-party evaluation
Debt-Like Tokens
- Offer fixed return rates with possible extra returns
- Require disclosure of project creditworthiness and risk assessment
Operation of Digital Asset Businesses
The Decree regulates six types of digital asset business activities:
- Digital Asset Exchange: A center or network for buying, selling, or exchanging digital assets
- Digital Asset Broker: Acts as broker or agent for digital asset transactions
- Digital Asset Dealer: Purchases, sells, or exchanges digital assets on own account
- Digital Asset Fund Manager: Manages assets to seek benefits from digital assets
- Digital Asset Advisor: Provides advice on digital asset value or investment appropriateness
- Digital Asset Custodial Wallet Provider: Provides storage or key management services for digital assets
Exempt Activities
Certain activities are exempt from licensing requirements, including:
- Operations by the Bank of Thailand involving its own issued digital assets
- Custodial services limited to digital assets issued by the service providers themselves
- Broker/dealer services for THB-pegged stablecoins under specific conditions
Guidelines for Market Participants
For Digital Token Issuers
Issuer Requirements
- Must be a company established in Thailand (private or public)
- Directors and management must meet SEC qualification standards
- Requires sound business plan with audited financial statements
- Must disclose ongoing business performance and financials
Token Requirements
- Must be explicitly characterized as investment or utility token
- Smart contract source code must be disclosed
- Code must correspond with prospectus information
Offering Process
- Conducted through approved portals only
Investment limits vary by investor type:
- Institutional/UHNW/HNW: No limit
- Retail: THB 300,000 per person per offering (except real estate/infra tokens)
- Payment accepted in THB or approved cryptocurrencies (BTC, ETH, XRP, XLM)
For ICO Portals
Portal Requirements
- Must be SEC-approved company established in Thailand
- Minimum registered capital of THB 5 million
- Proper operation system and management structure
- No conflicts of interest with issuers
Key Responsibilities
- Conduct due diligence on offering projects
- Provide opinions to SEC on project qualifications
- Perform KYC and CDD procedures for all investors
- Categorize investors and provide knowledge tests
- Comply with AML/CTF regulations
For Digital Asset Business Operators
License Requirements
All digital asset business operators must obtain licenses from the Ministry of Finance upon SEC recommendation, with varying capital requirements:
- Exchanges: THB 100 million (or reduced amounts for specific models)
- Brokers: THB 50 million (or reduced for non-asset keeping)
- Dealers: THB 10 million
- Fund Managers: THB 25 million (or THB 10 million for institutional-only)
- Advisors: THB 1 million
- Custodial Wallet Providers: THB 50 million
Ongoing Requirements
Operators must maintain:
- Proper custody of customer assets with daily reconciliation
- SEC approval for new business lines
- Compliance with outsourcing regulations
- Adherence to listing rules (excluding meme tokens, fan tokens, NFTs, etc.)
- Restrictions on payment facilitation using digital assets
- Prohibitions on deposit-taking and lending services
- Advertising limitations (service-only, through official channels)
- IT security standards aligned with international regulations
- Comprehensive wallet and key management policies
For NFT Issuers and Marketplaces
NFTs are generally not regulated unless they exhibit characteristics of digital assets as defined by law. Platforms facilitating NFT trading may require digital asset business licenses if the NFTs function as investment instruments or mediums of exchange.
Anti-Money Laundering Regulations
Licensed digital asset business operators and approved portals are considered financial institutions under Thailand's Anti-Money Laundering Act, creating specific obligations:
Customer Due Diligence
- Must obtain specified customer information and verification evidence
- Risk assessment varies by product/service risk level
- Requirements range from simple manual checks to intensive verification for high-risk products
Ongoing Compliance
- Maintain AML internal policies and guidelines
- Conduct customer risk assessments and reviews
- Implement enhanced due diligence for high-risk customers
- Maintain updated sanctions lists and conduct regular screenings
- Monitor and report suspicious transactions
- Implement specific internal controls
The 2024 amendment to counter-terrorism financing legislation emphasizes sanction screening and prohibits transactions with designated persons.
Stablecoins and Programmable Payments
THB-Backed Stablecoins
Early 2024 restrictions classified THB-backed stablecoins intended as payment means as "e-Money" under the Payment Systems Act. Service providers must consult with the Bank of Thailand before operations.
Programmable Payment Sandbox
Late 2024 introduced a testing project for programmable payments under the Enhanced Regulatory Sandbox Framework. Key criteria include:
- Electronic units must be pegged to THB (1:1)
- Clear redemption rights to convert back to THB
- Risk management guidelines and technological contingency plans
- KYC, KYM, and CDD processes
- Client suitability assessments
- Controls to prevent use outside testing scope
- Restrictions on misleading promotion
Frequently Asked Questions
What are the main types of digital assets regulated in Thailand?
Thailand regulates two primary types of digital assets: cryptocurrencies and digital tokens. Cryptocurrencies function primarily as mediums of exchange, while digital tokens represent rights to investments or specific goods/services. The regulatory framework distinguishes between these categories with different compliance requirements for each.
How can a foreign company offer digital tokens in Thailand?
Foreign companies must establish a Thai entity to offer digital tokens to the public in Thailand. The offering must be conducted through an SEC-approved portal, and the company must meet all qualification requirements, including having audited financial statements and a sound business plan. 👉 Explore more regulatory strategies
What are the investment limits for retail investors?
Retail investors are limited to THB 300,000 per person per offering round for most digital tokens. However, this limit doesn't apply to real estate-backed and infrastructure-backed tokens. Institutional, ultra-high-net-worth, and high-net-worth investors face no investment limits.
Are NFTs regulated under Thai digital asset laws?
NFTs are generally not regulated unless they exhibit characteristics of defined digital assets. If an NFT functions as a medium of exchange, represents investment rights, or provides rights to specific goods/services, it may fall under regulatory oversight. Pure digital collectibles without additional rights typically remain unregulated.
What is the process for obtaining a digital asset business license?
The licensing process involves applying to the SEC with detailed documentation about business operations, security measures, and compliance procedures. Applicants must meet capital requirements, demonstrate operational capability, and pass suitability assessments. The SEC makes recommendations to the Ministry of Finance for final license approval.
How does Thailand's approach to digital asset regulation compare to other jurisdictions?
Thailand has developed a comprehensive regulatory framework that balances innovation with investor protection. The approach aligns with global trends toward structured regulation while addressing local market characteristics. The recent proposed amendments to combine cryptocurrency and digital token definitions reflect movement toward international standards adopted by many other jurisdictions. 👉 View international compliance tools