You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 13, 2021

Bank of Thailand to Update Foreign Exchange Business Regulations

Subscribe to Updates

On November 23, 2021, Thailand’s cabinet approved in principle the amended Ministerial Regulation No. 13 issued under the Exchange Control Act, B.E. 2485 (1942), as amended (ECA).

The ECA is an integral instrument of the Bank of Thailand (BOT) for regulating businesses relating to foreign means of payment (i.e., foreign exchange business) and controlling inward and outward remittances as well as exchange and conversion between Thai baht and foreign currencies. Under the current ECA, no party may purchase, sell, lend, exchange, or transfer foreign currencies except for authorized juristic persons (bank and non-bank entities) or authorized individuals who are licensed by the Ministry of Finance.

The major amendments to Ministerial Regulation No. 13 of the ECA introduce a number of changes to the current regulations for foreign exchange business operations:

  • Expansion of the scope of foreign exchange business
    The scope of a foreign exchange business is currently limited to purchasing, selling, lending, and exchanging foreign currency in the form of banknotes, coins, and travelers’ cheques (i.e., banknotes-to-banknotes conversion only). The new amendments will expand the scope of foreign exchange business to include more foreign currency payment types. For instance, foreign travelers will be able to use credit or debit cards issued by a foreign commercial bank to exchange for cash (i.e., card-to-banknotes conversion).
  • Additional modes of authorizing foreign exchange businesses
    Licensing is currently the only mode of authorization for a foreign exchange business in Thailand. Under the amended regulations, there will be two options for authorization: licensing or registration. While the exact requirements and definition of “registration” will become clearer after the actual amended regulation and any subordinate legislation become available, this indication of an additional mode of authorization may imply varying requirements and burdens in the application process.
  • Allowance of a foreign exchange business license to cover all branches and channels
    A license is currently granted for a fixed location or channel (i.e., one-to-one), which means each additional branch of business operations requires a separate license. Under the amendments, licenses will no longer be tied to a specific location or channel but will cover all locations of business operations (i.e., one-to-many). However, the new registration mode is one-to-one, meaning that every business branch or service channel will have to apply for separate registration.
  • Relaxation of foreign-source income rules
    Current regulations require those who earn income in foreign currencies from foreign sources to either sell the currency to a commercial bank in Thailand or deposit it into a foreign-currency account. The amended regulations allow such foreign currencies to also be used for other transactions, such as payment of trade debts. In addition, it will be possible to use foreign-source income in foreign currencies for transactions (other than selling or depositing) with any authorized juristic person or authorized money exchange operator that has successfully applied for a foreign exchange business license or registration in Thailand.
  • Removal of possibility for individuals to apply for a foreign exchange business license
    Currently, both individuals and juristic persons (e.g., companies) can apply for a license to engage in a foreign exchange business—and as of October 19, 2021, BOT statistics indicated that 114 of the 2,326 authorized foreign money exchange operations in Thailand were individuals. Under the new regulations, however, individuals may no longer apply for a license. Only juristic persons will be able to apply for a license to engage in the foreign exchange business. Individuals who are currently holding a license will be allowed to continue their business operation for up to three years from the effective date of the amended ECA; beyond that they will no longer be allowed foreign exchange business operations in Thailand.
  • New possible disqualification for directors, management, and majority shareholders
    Under the current rules, individuals are disqualified from serving as directors, managers, and major shareholders of a license holder by bankruptcy, imprisonment for a foreign exchange violation, or a sentence for a money-laundering or counter-terrorist financing crime. The amended regulations add another offense to the list of possible disqualifications: conducting a foreign exchange business without a valid license or registration.

The expected modernizing effects of this draft amendment on the regulatory regime for foreign exchange businesses come in response to the fast development of the fintech industry and emerging innovative means of payment. The draft also adopts more stringent requirements and international standards in order to achieve good governance.

Following the cabinet approval, the draft amendment to Ministerial Regulation No. 13 under the ECA will undergo consideration by the Council of State, after which it will take effect. This process will likely be completed in the coming months.

For guidance on any aspect of exchange control or foreign investment regulations in Thailand, please contact Kobkit Thienpreecha at [email protected] or +66 2056 5534, Nutavit Sirikan at [email protected] or +66 2056 5510, or Thammapas Chanpanich at [email protected] or +66 2056 5561.

Related Professionals

Practices

Banking and Finance

Capital Markets

Corporate/M&A

Location

RELATED INSIGHTS​ 

April 28, 2025
In recent years, Vietnam has positioned itself among the leading countries in the world in terms of digital asset ownership and trading volume. This rapid adoption reflects the country’s growing digital economy and the increasing engagement of individuals and businesses in blockchain-based financial activities. Central to this growth are Resolution No. 57-NQ/TW of the Politburo dated December 22, 2024, on breakthroughs in science, technology, innovation, and national digital transformation with a vision to 2045 (“Resolution 57”) and Resolution No. 03/NQ-CP of the Government dated January 9, 2025, promulgating the Action Plan to Implement Resolution 57 (“Resolution 03”), which outline a flexible and innovative policy framework that embraces pilot programs for emerging technologies to lay the groundwork for Vietnam’s legislative framework concerning cryptocurrency and blockchain technologies. Regulatory clarity in terms of digital assets and blockchain technologies is now more critical than ever for businesses and investors. In light of this, Vietnam is currently in the process of introducing three key legal instruments, with drafts of the Law on Digital Technology Industry (“Draft DTI Law”), Resolution of the National Assembly on the Establishment of Regional and International Financial Centers in Vietnam (“Draft Financial Center Resolution”), and Resolution of the Government on the Pilot Implementation of Crypto Asset Markets in Vietnam (“Draft Crypto Pilot Resolution”) nearing promulgation. Current Regulatory Direction and Schedule Vietnam’s regulatory framework for crypto assets and blockchain has been in a developmental stage since 2017, focusing on directions, plans, and schedules rather than established regulations. In February 2024, under Decision No. 194/QD-TTg of the Prime Minister, the Ministry of Finance (MOF) was assigned to draft a legal framework to either prohibit or regulate virtual assets and service providers by May 2025, signaling a clearer regulatory direction. In March 2025, Directive No. 05/CT-TTg of the Prime Minister directed the MOF
Read More
April 28, 2025
While Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA) has been in place for over two decades, the issue of nominee arrangements remains a hot topic—especially as authorities continue to crack down on businesses that use Thai nationals to hold shares in violation of foreign ownership restrictions under the FBA. The FBA was enacted to limit foreign parties (which includes foreign individuals, offshore legal entities, and foreign majority-owned companies in Thailand) ability to conduct certain business activities in Thailand without authorization. This legal restriction has led many business operators to use nominees to operate their businesses. Similar to many other countries, nominee arrangements are illegal in Thailand. The FBA expressly prohibits foreigners from using Thai nationals to hold shares on their behalf in a way that enables them to own and operate reserved businesses under the law. Engaging in such arrangements (including conducting a business without the necessary license under the FBA) can result in severe penalties, including imprisonment, fines, and the forced dissolution of the business. The authorities, particularly the Ministry of Commerce and the Department of Special Investigation, continue to actively pursue cases involving suspected nominees. The FBA categorizes businesses into three lists, each outlining different levels of restrictions on foreign ownership and participation: List 1: Foreign business operators are strictly prohibited from engaging in any of the business activities on list 1, such as media outlets (newspapers, radio, and television), rice farming, forestry, extraction of Thai medicinal herbs, and land trading. List 2: Foreign business operators must obtain a foreign business license (FBL) from the Department of Business Development (DBD) and secure approval from the Thai cabinet to engage in a business activity on list 2. In addition, the company must be at least 40% Thai-owned (this may be reduced to 25% with special approval from
Read More
April 22, 2025
Thailand’s Immigration Bureau has announced the launch of the Thailand Digital Arrival Card (TDAC) as part of ongoing efforts to improve entry procedures and streamline immigration processing. Effective May 1, 2025, all foreign nationals with any type of visa entering Thailand by any means will be required to complete the TDAC online prior to arrival. This requirement does not apply to individuals transiting or transferring through Thailand without passing through immigration control, or to those entering with a border pass. Foreign nationals planning to enter Thailand must complete and submit their TDAC within the three days prior to their arrival date. The form, which collects passport information, personal details, travel information (e.g., flight number), Thai accommodation information, and a health declaration—can be filled out in English online at https://tdac.immigration.go.th. Once the form is submitted, an acknowledgment will be sent to the email address entered on the form. This acknowledgment must be presented at the immigration checkpoint in Thailand along with travel documents for verification. The Thai government strongly encourages all foreign passport holders to complete the TDAC ahead of their departure to prevent any entry delays or issues at the checkpoint.
Read More
April 21, 2025
In response to the Thai stock index’s decline and market volatility, Thailand’s Department of Business Development is proposing an amendment to the country’s treasury stock rules to ease the requirements for both the implementation and the disposal of shares, as they see this as a timely opportunity to optimize the use of treasury stock as a tool to support share prices and prevent them from falling below their fundamental value. The rules governing treasury stock for public companies are set out in the Public Limited Companies Act B.E. 2535 (1992) (PLCA), its accompanying ministerial regulation, and the relevant rules issued by the Stock Exchange of Thailand (SET). The law permits share repurchases in two circumstances: (1) to buy back shares from dissenting shareholders following an amendment to the articles of association affecting voting or dividend rights, and (2) for financial management purposes when the company has retained earnings and excess liquidity—this second scenario is more common in the market. To satisfy the excess liquidity requirement, the company must primarily demonstrate the ability to meet its debt obligations within six months, have sufficient retained earnings, and ensure that the treasury stock implementation does not breach the SET’s free-float requirement. The SET rules prescribe that the repurchase price must not exceed 115% of the five-day average closing price at the time of repurchase, and the disposal price must not be lower than 85% of this average closing price at the time of disposal. As for the timing, treasury shares must be held for at least three months and sold within three years; otherwise, the company must proceed with a capital reduction. There is also a six-month waiting period following the finishing or canceling of a previous share buyback before a company can start a new one. The proposed amendment will ease
Read More