Thailand Embraces Regulated Crypto Expansion Amid Regional Skepticism
As Southeast Asian governments grow increasingly wary of the risks associated with cryptocurrency mining, Thailand has taken a different approach by expanding its regulatory framework to include new digital assets and licensing requirements. While neighboring countries like Laos and Vietnam have seen their brief crypto dreams dim due to concerns over illegal mining and scams, Thailand is positioning itself as a regional leader in regulated digital asset innovation.
Thailand’s Regulatory Shift
In a move aimed at boosting market confidence and consumer protection, Thailand’s Securities and Exchange Commission (SEC) officially approved the inclusion of stablecoins USD Coin (USDC) and Tether (USDT) for use in digital asset transactions as of March 2025. This decision allows these tokens to be used in permitted activities under the Emergency Decree and relevant SEC notifications, but does not lift the existing ban on using digital assets as a general means of payment for goods and services.
The SEC has also revised rules governing Initial Coin Offerings (ICOs), tightening licensing requirements to ensure investors receive more comprehensive information and protection. Offshore operators targeting Thai users must now obtain a license from the Ministry of Finance, with non-compliance resulting in criminal penalties—including imprisonment of two to five years and/or fines—as well as the blocking of unlicensed platforms under the Computer Crime Act.
Licensing Landscape
As of February 2025, the SEC has licensed a total of:
- 9 ICO portals
- 12 digital asset exchanges
- 13 digital asset brokers
- 3 digital asset dealerships
- 2 digital asset custodial wallet providers
- 2 fund managers (crypto/digital tokens)
- 2 digital asset investment advisors
This expansion of regulatory oversight is designed to close enforcement gaps and ensure that foreign and domestic operators alike are held to the same standards of consumer protection and market integrity.
Bitcoin Mining: Legal but Taxable
Unlike some of its neighbors, Thailand does not prohibit Bitcoin or cryptocurrency mining. However, the activity is not unregulated. The Revenue Department clarified in January 2022 that Bitcoin mining is considered analogous to a manufacturing operation and is therefore taxable under Section 40(8) of the Revenue Code. This means miners must report their activities and pay applicable taxes, but there are no outright bans on mining operations.
Regional Context: Growing Skepticism
Across Southeast Asia, governments are grappling with the challenges posed by illegal crypto mining and scam compounds. In Laos, a pilot program for crypto mining and trading launched shortly after China’s ban on such activities, but the country’s enthusiasm has waned as authorities confront the realities of energy consumption, environmental impact, and financial crime.
Other countries in the region have taken a more cautious approach, with some imposing outright bans or strict limitations on mining activities. The proliferation of scams and the strain on national power grids have led to increased scrutiny and regulatory crackdowns, highlighting the risks associated with unregulated crypto expansion.
Thailand’s Balanced Approach
Thailand’s strategy stands out for its balance between innovation and regulation. By licensing operators, expanding the list of permitted digital assets, and ensuring tax compliance, the country aims to foster a safe and transparent digital asset ecosystem. This approach not only protects consumers but also positions Thailand as a potential hub for legitimate crypto activity in Southeast Asia.
As the region continues to navigate the complex landscape of cryptocurrency, Thailand’s regulatory model may serve as a blueprint for other countries seeking to harness the benefits of digital assets while mitigating their risks.