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

May 14, 2018

Thailand Issues New Royal Decrees to Regulate Cryptocurrency and Digital Tokens

Subscribe to Updates

On Sunday, May 13, two Royal Decrees were published in the Thai Government Gazette, addressing matters relevant to cryptocurrencies and digital tokens. These Royal Decrees clarify some longstanding questions about initial coin offerings (ICOs) and related matters.

One of the Royal Decrees sets out the framework for offering, trading, brokering, and exchanging digital currencies and digital tokens, whilst the other deals with some key tax issues.

The first Royal Decree—named the Royal Decree on Digital Asset Business—differentiates between cryptocurrency on the one hand and digital tokens on the other. It also defines “digital asset business” to include operation of a digital asset trading center, operation of a digital asset brokerage, and operation of a digital asset dealer, whilst also leaving room for the Securities and Exchange Commission (SEC) to designate additional categories of business to be regulated.

As expected, the Minister of Finance was granted the authority to administer the Royal Decree, with authority also granted to the SEC to address various relevant matters. Engagement in digital asset business now requires a license to be granted by the Ministry of Finance, on the recommendation of the SEC.

In terms of the offering of digital tokens, the Royal Decree takes an approach analogous to that of securities under the Securities and Exchange Act. Digital tokens must be offered for sale only according to conditions prescribed by the SEC, and only after the prospectus has become effective. Further, they must only be offered through a service provider operating a digital token offering system approved by the SEC. Even after approval is granted, the SEC has the authority to take action in the case of false, misleading, or incomplete information, etc.

The Royal Decree also sets out qualifications for those engaging in digital asset business, those offering digital tokens or operating a digital token offering system, and the respective directors and executives of each such business. There are also provisions to prevent unfair trading. Digital asset traders are now subject to requirements on segregation of customer assets, and there are provisions to protect investors in the event of possible insolvency of a digital asset trader.

A number of criminal penalties are provided for breach of certain provisions of the Royal Decree, which, depending on the offense, can be as high as up to two years in prison and/or a fine equal to double the value of the tokens (minimum fine of THB 500,000). Some offenses also attract daily fines of up to THB 10,000, and some offenses specify fines without reference to the value of the tokens, as high as THB 2,000,000, as well as imprisonment for up to ten years. The court can also order reimbursement of the amount received from committing the offense, prohibition of transacting in digital assets for up to five years, prohibition of an individual acting as a director or executive of a digital assets business for up to ten years, and reimbursement of the SEC’s expenses incurred in conducting an investigation. Civil penalties are also contemplated for some offenses.

Those business operators which are already engaging in digital assets business are required to apply for a license under the Royal Decree within 90 days after the Royal Decree becomes effective (i.e. by August 11, 2018). Once the application has been filed, such business operator is permitted to continue to operate until ordered to cease. Similarly, with respect to digital tokens issued prior to the date of the Royal Decree, the issuer must apply to the SEC for approval, in accordance with SEC regulations.

The other Royal Decree addresses key tax issues. In essence, it amends the section of the Revenue Code setting out categories of assessable income, as well as a section of the Revenue Code providing withholding obligations. It specifies that any share of profit or similar benefits obtained by holding or possession of digital tokens, as well as the benefits derived from the transfer of cryptocurrency or digital tokens, that exceeds the amount of investment, is regarded as assessable income. It imposes a requirement to withhold 15% on payment of such income.

If you would like more information on the new Royal Decrees, or about regulatory requirements applicable to cryptocurrencies, digital tokens, and the operation of digital asset businesses in Thailand in general, please contact David Duncan at [email protected] or Kitti Thaisomboon at [email protected].

Related Professionals

Industries

Technology

Practices

Banking and Finance

Tax

Location

RELATED INSIGHTS​ 

September 4, 2026
Foreign business restrictions on telecommunications, treasury center businesses, and intragroup support services were eased when Thailand published the Ministerial Regulation Prescribing Service Businesses Not Requiring Permission for Foreign Business Operations (No. 5) B.E. 2569 (2026) in the Government Gazette on August 28, 2026. The ministerial regulation expands the categories of service businesses that foreign investors may operate without a foreign business license (FBL) under the Foreign Business Act B.E. 2542 (1999) (FBA). Of particular relevance to the telecommunications, fintech, and technology sectors, the ministerial regulation exempts: Type 1 telecommunications licensees, which do not have their own networks; Treasury center businesses operated in accordance with Thailand’s exchange control regulations; and Certain intragroup administrative, human resources, and information technology management services. Telecommunications Services Foreign-owned businesses providing telecommunications services under a type 1 telecommunications license may now operate without obtaining an FBL. This may streamline market entry for qualifying telecommunications and digital infrastructure businesses. The exemption applies only to the FBA licensing requirement. Operators must continue to comply with applicable requirements under the Telecommunications Business Act and the regulations of the National Broadcasting and Telecommunications Commission, and the change does not affect foreign ownership restrictions applicable to type 2 or type 3 telecommunications businesses. Treasury Center Businesses The ministerial regulation also exempts qualifying treasury center businesses from the FBL requirement. This may facilitate centralized treasury functions in Thailand, including liquidity management, foreign exchange management, and intragroup funding arrangements. Treasury center operations remain subject to applicable requirements of the Bank of Thailand and other competent authorities. Intragroup Administrative, HR, and IT Services Certain administrative, human resources, and information technology management services provided between affiliated entities are also exempt, provided the relevant entities satisfy prescribed ownership or management criteria. The exemption is available where the service provider and recipient are related through specified ownership
Read More
September 2, 2026
Thailand and China have a longstanding and significant trade relationship, which increasingly extends to e-commerce and digitally enabled supply chains. While these channels create new opportunities for businesses to reach consumers across borders, their growth also brings greater exposure to intellectual property (IP) infringement across jurisdictions and online platforms. Effective cooperation between the two countries’ enforcement authorities has therefore become increasingly important. To strengthen cooperation in this area, Thailand and China signed a memorandum of understanding (MOU) on IP enforcement in Beijing on July 20, 2026, during the Thai prime minister’s official visit to China. Officially titled “Memorandum of Understanding Between the State Administration for Market Regulation of the People’s Republic of China and the Ministry of Commerce of the Kingdom of Thailand on Cooperation in the Field of Intellectual Property Enforcement,” the MOU forms part of a broader bilateral agenda covering industrial and supply chains, participation by micro, small, and medium-sized enterprises (MSMEs), cooperation associated with the ASEAN–China Free Trade Area 3.0, and progress on the registration of Thai geographical indications in China. The MOU establishes a bilateral framework for cooperation and coordination in five broad areas: Strengthening dialogue in IP enforcement; Enhancing information sharing; Facilitating the enforcement of IP rights in cases arising in the parties’ domestic markets and on online platforms, in accordance with their respective domestic laws; Promoting cooperation in IP enforcement training and human resource development; and Undertaking other cooperation activities agreed upon by both sides. The Department of Intellectual Property (DIP) will serve as the principal coordinating agency for Thailand, while the Bureau of Law Enforcement and Inspection in China’s State Administration for Market Regulation (SAMR) will serve in that role for China. The framework is particularly relevant to the growth of e-commerce, as it covers infringement in the domestic markets and on
Read More
August 25, 2026
Vietnam has enacted a new decree establishing administrative penalties for violations in the fields of cybersecurity and personal data protection. Decree No. 330/2026/NĐ-CP (Decree 330), issued and effective from August 19, 2026, provides a detailed sanctions framework for noncompliance with the Law on Personal Data Protection (including its implementing regulations under Decree 356/2025/ND-CP) and the Law on Cybersecurity, together with their guiding decrees. The issuance of Decree 330 signals that the practical grace period previously perceived by many businesses may be drawing to a close, with active regulatory enforcement in these areas expected to commence in earnest. Scope and Key Provisions Decree 330 has extraterritorial effect and applies to both onshore and offshore companies. For offshore companies, it applies to those that (1) provide telecommunications, internet, online-content, information-technology, cybersecurity, or cross-border services and (2) are involved in or related to the processing of personal data of Vietnamese citizens and certain other people of Vietnamese origin. Decree 330’s key provisions cover the following areas: Administrative penalties for violations relating to the protection of national security and public order in cyberspace, including the dissemination of unlawful, false, or unverified information. Sanctions for cyberattacks, unauthorized access, introduction of harmful code or programs, and failure to cooperate with specialized cybersecurity forces. Sanctions for personal data protection violations, such as consent, cross-border data transfers, impact assessments, breach notification, and data-subject rights, among others—with maximum fines of up to 5% of an organization’s preceding-year revenue for cross-border transfer violations, or up to VND 3 billion for other data-protection breaches. Personal Data Protection Penalties The key sanctions for personal data protection violations are as follows: Consent violations: Fines of up to VND 70 million (approx. USD 2,642), plus potential additional sanctions and remedial measures including irreversible deletion of personal data collected without consent and confiscation of
Read More
August 25, 2026
Thailand’s Electronic Transactions Development Agency (ETDA) is studying potential new regulatory measures for digital platform services that could significantly expand the country’s digital platform governance framework. The ETDA has already conducted one public consultation session on the proposed measures and will hold additional sessions on August 25 and September 2, 2026, covering five types of platform services under the Royal Decree on Digital Platform Services B.E. 2565 (2022). The measures under study are preliminary and may be changed based on consultation outcomes. Foundational Measures Applicable to All Platform Types Seven baseline obligations would apply across all digital platform categories: Transparency reports. Platforms must prepare and publish statistical reports on platform governance activities, including the number of content items removed or restricted and appeal outcomes, in a comparable format. Notice and action mechanism. Platforms must establish minimum standards for channels to report potentially illegal content or goods, conduct case-by-case review, provide explanations when content is removed or restricted, and maintain an internal appeals channel. Rights over automated decision-making. Users significantly affected by automated decisions are granted rights to request an explanation, request human review, and contest the decision. Service level agreements (SLAs). Platforms must publish minimum standards for response times, processing timelines, progress notifications, and remedies for incidents on the platform. Labeling of AI-generated content. Content generated or modified by AI must carry visible labels and machine-readable metadata, with exceptions for creative works that disclose AI use in a nonmisleading manner. Prohibition of dark patterns. User interface designs that deceive, coerce, or distort user decision-making are prohibited, including hiding critical information, creating false urgency, or making service cancellation unreasonably difficult. Business user fairness. Platforms must meet minimum standards for the treatment of sellers, workers, and content creators, including advance notice of term changes, explanation of account suspensions or visibility reductions,
Read More