Thailand's government recently passed groundbreaking legislation to resolve long-standing debates surrounding cryptocurrency regulation in the country. The Digital Asset Business Decree establishes clear frameworks for digital asset classification and oversight.
Dual Classification: Currency AND Security
The new law introduces two distinct categories for digital assets:
- Cryptocurrencies: Defined as "media of exchange for goods"
- Digital Tokens: Characterized as "investment participation rights or claims to specific goods"
This innovative approach allows assets to function as either currencies or securities based on their intended purpose, providing regulatory flexibility.
Regulated Digital Asset Activities
The legislation establishes oversight for four key service providers:
- Digital asset exchanges
- Digital asset brokers
- Digital asset dealers
- Other financial activities designated by the Ministry of Finance
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Balanced Regulatory Framework
Archari Suppiroj, Chairperson of Thailand's SEC, emphasized the need for equilibrium:
"We aim to strike a balance between crypto skeptics and those misusing digital assets for gambling. Regulations must be carefully calibrated—overly restrictive measures could drive away legitimate investors."
Key features of the governance model:
- Ministry of Finance oversees exchange licensing
- Progressive compliance requirements
- Risk-proportionate supervision
ICO Regulations
The law introduces comprehensive ICO (Initial Coin Offering) controls:
- Mandatory MOF approval for all offerings
- Formalized processes mirroring traditional securities issuance
Crowdfunding platform requirements:
- Post-issuance monitoring for ≥1 year
- Minimum reserve of ฿5M (~$157,000)
FAQ: Thailand's Crypto Legislation Explained
Q: How does Thailand classify NFTs?
A: The law currently focuses on utility tokens and cryptocurrencies. NFTs may fall under digital tokens if representing investment rights.
Q: Can foreign exchanges operate in Thailand?
A: Yes, provided they obtain proper licensing from Thai authorities and comply with local regulations.
Q: What penalties exist for non-compliance?
A: The decree outlines graduated penalties including fines and license revocation, with specific amounts case-dependent.
Q: How does this compare to Singapore's framework?
A: Both adopt dual classification, but Thailand imposes stricter capital requirements for ICO platforms.
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This analysis reflects current legislative developments as of 2025. Regulations may evolve as the digital asset market matures.