Quick Answer
Yes, cryptocurrency is legal in Thailand but not legal tender.
- It is regulated as a “digital asset” under Thai law.
- Trading is only permitted through locally licensed and regulated exchanges.
Legal Status of Crypto in Thailand
Cryptocurrency is legal in Thailand, though it is not recognized as legal tender. Its legal status is defined by its classification as a “digital asset,” meaning all related activities like trading and exchange must be performed through locally licensed operators. This regulatory environment is primarily shaped by the Digital Asset Business Decree and overseen by bodies like the Thai Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT), which enforce strict compliance requirements to protect investors and maintain financial stability.
Current Regulations
Thailand's current regulations classify cryptocurrencies as "digital assets" under the 2018 Digital Asset Business Decree, requiring all trading to occur through operators licensed by the Thai Securities and Exchange Commission (SEC). These licensed entities must follow strict compliance rules, including robust Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols. In a major policy shift to attract investment, the government has implemented a crypto tax waiver on capital gains until the end of 2029. This incentive is exclusively for trades on locally regulated platforms, reinforcing the government's push toward a supervised domestic market.
Regulatory Authorities
Several key regulatory bodies collaborate to oversee and enforce Thailand's digital asset framework.
- Thai Securities and Exchange Commission (SEC): This body governs and licenses digital asset businesses, including exchanges, brokers, and dealers. It also approves which cryptocurrencies can be traded and sets investor protection rules like KYC requirements.
- Bank of Thailand (BOT): The central bank regulates the involvement of financial institutions in digital assets and prohibits them from directly undertaking digital asset business. It also oversees the development of stablecoin policies and a national digital currency.
- Anti-Money Laundering Office (AMLO): This office enforces strict anti-money laundering and counter-terrorism financing laws within the digital asset space. It mandates that exchanges verify customer identities and report suspicious or large transactions.
- Ministry of Finance: This ministry is responsible for the nation's crypto tax policies, such as the capital gains tax waiver. Its goal is to use fiscal policy to stimulate the domestic digital asset market and attract foreign investment.
- Ministry of Digital Economy and Society (DE): In coordination with the SEC, this ministry is empowered to block access to unlicensed foreign digital asset platforms that solicit investors in Thailand. It plays a crucial role in preventing cybercrime and protecting the public from illegal operators.
Historical Context
Thailand's crypto journey began in 2014 when an early ban was lifted. The pivotal moment came in 2018 with the Royal Decree on Digital Asset Business, which classified cryptocurrencies as "digital assets" and established a formal licensing framework under the SEC. This legitimized the market but also introduced strict oversight. Subsequent years saw increased regulation, including mandatory physical identity verification in 2021 and new investor protection rules in 2023-2024. Most recently, a five-year capital gains tax waiver was introduced to stimulate the domestic market and attract foreign investment.
Compliance Requirements for Businesses in Thailand
- Anti-Money Laundering (AML) Checks: Businesses must implement robust AML and counter-terrorism financing measures comparable to those in the banking sector. Under the new Cybercrime Law, operators are required to exchange information, screen and suspend transactions or accounts involved in cybercrime, and blacklist associated wallet addresses.
- Know-Your-Customer (KYC) Requirements: Operators must follow stringent KYC processes for customer identification and verification. Bank of Thailand regulations mandate that identification data and transaction details be securely stored for the time period required by anti-money laundering laws.
- Mandatory Operational Procedures: Digital asset businesses must adhere to several key operational mandates, including:
- Licensing: Any platform providing services in Thailand—evidenced by using the Thai language, accepting Baht, or marketing to Thai users—must obtain a license from the SEC. Unlicensed foreign platforms face being blocked by authorities.
- Risk Management: Companies, particularly those within financial groups, must conduct thorough risk assessments, maintain adequate capital, and undergo annual IT and cybersecurity audits to manage intragroup contagion risks.
- Consumer Protection: Businesses must assess a customer’s risk tolerance before offering services and are restricted from marketing to those who do not meet suitability criteria.
- Penalties for Non-Compliance: Severe penalties apply for violations. Individuals allowing their accounts to be used as "mule accounts" face up to three years in prison and fines up to 300,000 baht. For businesses, non-compliance can lead to the suspension of operations by regulators.
Why this matters for Cross-Border Payments
These regulations create significant friction for cross-border crypto payments between Thailand and India. Because Thailand mandates that all digital asset transactions occur on locally licensed platforms, Indian businesses cannot send funds directly to Thai counterparts without using a regulated domestic intermediary. This requirement introduces major operational pain points, including increased compliance overhead from navigating two sets of AML/KYC rules and a higher risk of payments being delayed or blocked. The siloed regulatory approach complicates what should be a seamless process, adding costs and uncertainty for businesses operating between the two nations.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides infrastructure to bridge traditional and crypto payment systems, addressing the friction in cross-border transactions. Its Lightspark Connect product enables native Bitcoin payments on the Lightning Network, automating complex backend tasks like routing and liquidity. Meanwhile, Grid Switch facilitates fiat-to-fiat transfers by connecting domestic real-time payment systems across borders, using Bitcoin as a neutral settlement asset. This model circumvents the operational hurdles of direct, unregulated crypto transfers between countries like India and Thailand.
For regulated institutions, Lightspark offers tools to aid compliance. Features such as audit-ready reporting, flexible custody options, and developer-friendly APIs with built-in compliance features help businesses meet their own stringent KYC/AML obligations. This allows them to leverage instant, low-cost payments while navigating complex regulatory landscapes.
To learn more about how Lightspark can streamline your cross-border payments, visit the Lightspark website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
FAQs
Can I use cryptocurrency for daily purchases in Thailand?
No, you cannot use cryptocurrency for everyday payments as it is not recognized as legal tender in the country. The Bank of Thailand has actively discouraged businesses from accepting digital assets for goods and services to avoid risks to the financial system.
Is cryptocurrency mining legal in Thailand?
While not explicitly illegal, cryptocurrency mining operates in a regulatory gray area and is not officially supported by the government. Authorities have expressed concerns over the high energy consumption associated with mining activities.
Are specific types of cryptocurrencies banned in Thailand?
Yes, the Thai SEC has prohibited the trading of certain types of tokens on local exchanges, including meme tokens, fan tokens, and non-fungible tokens (NFTs). This measure is intended to protect investors from assets that lack clear objectives or substance.
Sources
- Kietduriyakul, Komkrit, and Kullarat Phongsathaporn. "A Complete Guide to Digital Asset Law in Thailand 2025." Baker McKenzie, 20 Feb. 2025, www.bakermckenzie.com/en/insight/publications/guides/guide-to-cryptocurrency-in-thailand.
- "Thailand - Cryptocurrency Laws and Regulation." Freeman Law, freemanlaw.com/cryptocurrency/thailand/.
- Thailand, Bank of. Notification of the Bank of Thailand No. FPG. 6/2565 Re: Regulations on commercial banks’ financial business groups undertaking digital asset related businesses and transactions. Bank of Thailand, 6 Oct. 2022, www.bot.or.th/content/dam/bot/fipcs/documents/FPG/2565/EngPDF/25650188.pdf.
- Thailand, Securities and Exchange Commission. "SEC is ready to elevate restrictions on illegal digital asset platforms after the new laws take effect today." SEC Thailand, 13 Apr. 2025, www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=11698.
- "Thailand Waives Capital Gains Tax on Crypto for Five Years." Royal Thai Embassy, Washington, D.C., 7 July 2025, washingtondc.thaiembassy.org/en/content/thailand-waives-capital-gains-tax-on-crypto-for-fi?cate=64c93aa8fd9aa70789629292.
