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 25, 2026

Thailand Strengthens State Custody Procedures for Seized Digital Assets

Subscribe to Updates

Thailand published new rules on May 1, 2026, establishing clear procedures for how the Anti-Money Laundering Office (AMLO) handles digital assets seized during criminal and money laundering investigations. Taking effect the following day, the Regulation of the Anti-Money Laundering Board on the Custody and Management of Seized or Frozen Assets (No. 3) B.E. 2569 applies to digital asset businesses, cryptocurrency holders, and anyone subject to asset seizure under Thailand’s anti-money laundering laws.

For the first time, authorities now have a detailed roadmap for transferring seized digital property from private or foreign control into secure state custody. Digital asset businesses holding customer assets under investigation must be prepared to comply with these rules compelling repatriation of such assets in enforcement actions.

Expanded Definition of Digital Assets

The regulation defines digital assets to include not only those covered by Thailand’s existing digital asset business law but also any other property that can be stored using the same methods as digital assets. This broad formulation means the custody rules will apply to emerging blockchain-based assets and tokenized property that may not yet fall within the statutory definition of a digital asset business, giving authorities flexibility as the technology evolves.

Mandatory Transfer to Domestic Custody

When digital assets are held with service providers outside Thailand, AMLO will first attempt to transfer them to an account the office maintains with a licensed domestic digital asset business operator. If the domestic operator does not support that particular asset, the office will instead move the assets to its own cold wallet (offline, internet-isolated storage system). If neither option is feasible, the seizing official will report the situation to the Anti-Money Laundering Committee for alternative instructions.

A similar hierarchy governs assets held in an accused party’s private wallet or by any third party that is not a licensed domestic digital asset business operator. AMLO will transfer them without delay to another licensed domestic provider or, if that proves impossible, to the office’s cold wallet. In either scenario, the seizing official must document the asset account details, asset type, quantity, and value as of the seizure date, and the identity of the responsible custodian.

All fees and expenses incurred in transferring seized digital assets will be deducted directly from the assets themselves. The custodian will be required to report these costs to the secretary-general of the Anti-Money Laundering Board and notify the seizing official.

Cold Wallet Security Standards

The regulation requires cold wallets to use encryption key storage methods that are not connected to the internet. While the text does not enumerate every technical specification, it establishes that offline storage is the baseline security standard and that only designated personnel may maintain custody of these keys. If obstacles prevent compliance with these prescribed methods, the responsible custodian must seek approval from the AMLO secretary-general for alternative storage that still provides adequate security.

Practical Implications

The regulation eliminates discretion over whether and how seized digital assets are moved into state custody. Digital asset businesses should expect that any assets seized from their platforms or their customers will be transferred swiftly to another licensed provider or into offline storage. Operators holding customer funds under investigation must be prepared to facilitate these transfers without delay and to cooperate with documentation requirements. Businesses and individuals who hold digital assets with foreign service providers should also understand that Thai authorities now have a clear legal pathway to compel repatriation of those assets during enforcement actions.

For victims of money laundering, these regulations offer new hope for asset recovery. The clear procedures for seizing and securing digital assets—whether held domestically or abroad—create a more effective enforcement framework that can help trace, freeze, and ultimately return stolen funds to those harmed by financial crimes.

Related Professionals

Industries

Fintech

Technology

Practices

Dispute Resolution and Litigation

Location

RELATED INSIGHTS​ 

July 17, 2026
On July 11, 2026, media reports conveyed key messages from Bank of Thailand (BOT) Governor Vitai Ratanakorn’s announcement of a sweeping regulatory crackdown on grey capital activities. The measures target high-value cash transactions, gold trading, and stablecoin flows, with new requirements set to take effect in the fourth quarter of 2026. The initiative aims to prevent financial institutions from facilitating shadow economy activity, money laundering—particularly through stablecoins—and capital flight, through enhanced compliance obligations on commercial banks across multiple transaction channels. Expanded Cash Controls Close the Deposit–Withdrawal Circuit New fourth-quarter guidelines will require individuals depositing THB 5 million or more in cash to formally verify the source of their funds. This builds on restrictions introduced in April 2026, which required anyone withdrawing 5 million baht or more in cash to provide their bank with verified commercial justification for why electronic transfers or checks could not be used. That initial measure caused high-value physical cash withdrawals to drop by 35 percent nationwide. The upcoming deposit-side requirement closes the circuit on large cash movements. The BOT is also assessing tracking mechanisms for high-value banknote swaps, specifically targeting individuals seeking to exchange large volumes of THB 1,000 notes into smaller THB 100 or THB 500 denominations without clear business justification. Governor Vitai emphasized that these measures require continuous deployment of multiple parallel strategies rather than short-term fixes. Tightened Bullion Reporting Frameworks Restrict Money Laundering Channels The BOT has also tightened reporting frameworks for gold trading to close money laundering loopholes and shield the Thai baht from speculative bullion volatility. Regulators identified a recurring pattern in which buyers purchased large quantities of gold through digital applications in the morning and then made same-day physical withdrawals from retail gold shops in the afternoon. Gold shops are reminded of their duties to flag and report cash
Read More
July 16, 2026
Thailand’s Office of the Personal Data Protection Committee (PDPC) published a series of draft guidance documents for public consultation on July 7, 2026. Issued under the Personal Data Protection Act B.E. 2562 (2019) (PDPA), the drafts address a range of compliance issues and offer insight into the regulator’s current enforcement priorities. This article examines two of those drafts: one on lawful bases for processing personal data, and another on marketing and direct marketing. Together, they reflect the Office of the PDPC’s evolving expectations on lawful-basis selection, accountability, and the use of personal data in marketing. Organizations operating in Thailand should assess the practical implications now, before the guidance is finalized. Lawful Bases: A Structured Selection Process The draft guidance on lawful bases introduces a systematic five-step process for selecting an appropriate lawful basis for each processing activity. Organizations are expected to: Identify the processing activity involved. Assess the appropriate lawful basis. Evaluate whether the data is necessary for the processing. Conduct a legitimate interest assessment (LIA) where applicable. Ensure transparency through privacy notices. The guidance provides practical explanations and examples for each lawful basis under section 24 of the PDPA—including archiving, research, statistics, vital interests, contractual necessity, legal obligation, public task, legitimate interests, and consent—as well as the bases applicable to sensitive personal data under section 26. The aim is to promote more consistent and accurate lawful-basis selection across public- and private-sector organizations. A recurring theme throughout the guidance is that organizations should select the lawful basis that most accurately reflects the actual purpose and circumstances of the processing activity. The guidance cautions against treating consent as a default or catch-all basis where another lawful basis is more appropriate. For processing based on legitimate interests, organizations should conduct and document an LIA. Processing involving sensitive personal data may require
Read More
July 14, 2026
Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has published guidelines establishing a risk-based framework for the responsible use of artificial intelligence by telecom licensees. Released on July 2, 2026, the Guidelines on the Use of Artificial Intelligence for Telecommunications Services address governance structures, ethical principles, lifecycle management, and consumer protection obligations. Scope and Legal Context The nonbinding guidelines apply to holders of telecom business licenses under Thailand’s telecom licensing laws, but only with respect to the use of AI in providing licensed telecom services. Entities without such licenses are not directly subject to the guidelines, though they may be affected as third-party AI solution providers to licensees. The guidelines supplement and should be read alongside existing laws, including the Cybersecurity Act, the Personal Data Protection Act (PDPA), the Computer Crime Act, and the NBTC Notification regarding Measures to Protect Telecommunications Service Users’ Rights Regarding Personal Data, Privacy Rights, and Freedom of Telecommunications, as well as forthcoming AI governance legislation being drafted by the ETDA. AI Governance Structure Licensees are expected to establish committees, working groups, or designated officers at both policy and operational levels to set strategic direction for AI use, formulate governance policies and tools, and oversee risk management. Roles, responsibilities, and accountability should be clearly defined for all personnel across every stage of the AI lifecycle—including for third-party AI solution providers and outsourced service providers, whose obligations should be explicitly documented in service agreements. Core Principles The guidelines identify six core principles that licensees should adhere to when deploying AI: Compliance with laws, ethics, and international standards: AI should respect privacy, dignity, and human rights, and content filtering for inputs and outputs should be considered. For example, the AI should not be designed and developed to be used in generating false information, supporting illegal activities, or causing
Read More
July 10, 2026
Vietnam has taken a significant step in regulating its e-commerce sector with the issuance of a new decree guiding the country’s recently enacted Law on E-Commerce. Decree No. 248/2026/ND-CP, issued on June 30, 2026, and taking effect the following day, addresses mandatory platform policies, registration requirements for offshore platforms, additional obligations on platform operators, and market access conditions for foreign investors. Mandatory Policy Contents The decree sets out detailed guidance on the required contents of various platform policies, covering pricing, payment, display priority, livestream sales, delivery, returns, method of service provision, and service termination and refunds. Clarification of Obligations for Platform Operators The decree provides clarification of the obligations applicable to platform operators. Notably, intermediary e-commerce platform operators with online ordering functions must: Collect specific information to implement electronic identity verification of sellers; Cooperate with regulators by reporting online through the state e-commerce management system and by blocking, suspending, or removing content upon request of a competent authority; Maintain a mechanism to store contract data, including price, product or service information, and parties’ information, for at least three years from the date of contract conclusion; and If qualifying as a “large digital platform” under consumer protection law, maintain an online system for receiving and handling complaints and requests, and comply with enhanced content-removal requirements. Registration Requirements for Offshore Platforms Offshore e-commerce platforms, whether direct-sales, intermediary, social-network-based, or integrated, that conduct e-commerce activity in Vietnam must register with the Ministry of Industry and Trade if the platform: Allows Vietnamese-language selection; Uses a “.vn” domain; or Reaches 100,000 or more transactions with Vietnam-based buyers within a calendar year. Notably, the registration requirement now captures not only traditional intermediary platforms, but also direct-sales platforms. Foreign Investment Conditions Foreign investors holding a controlling interest in an intermediary e-commerce platform, a social media platform
Read More