In late May 2025, Thailand's cryptocurrency regulatory landscape presented a seemingly contradictory yet interrelated complex dynamic. On one hand, the Securities and Exchange Commission (SEC) of Thailand took decisive action, announcing that it would block access to five unauthorized cryptocurrency exchanges, including Bybit, OKX, CoinEx, 1000X.live, and XT.COM, starting June 28, 2025, to protect investors and combat illegal financial activities. On the other hand, the Thai government is actively promoting digital transformation, planning to fully open up the use of cryptocurrencies for travel expenses by international tourists, and there are indications that Thailand's banking sector may also be allowed to directly hold crypto assets on its balance sheet in the future. This series of 'carrot and stick' measures highlights Thailand's cautious balance between embracing digital economic opportunities and preventing financial risks.
Crackdown
According to the official announcement (No. 134/2568) issued by the Thai Securities and Exchange Commission on May 29, 2025, based on the Royal Decree on Prevention and Combating Technological Crimes (No. 2) that took effect on April 13, 2023, the Ministry of Digital Economy and Society (MDES) of Thailand has been empowered to order the blocking of access to unauthorized digital asset trading platforms.
The Thai SEC, after investigation, found that the five websites Bybit.com, 1000X.live, CoinEx.com, OKX.com/th, and XT.COM provided digital asset trading platform services to users in Thailand without obtaining legal operating licenses in Thailand. As a result, the Thai SEC has filed a criminal lawsuit with the economic crime prosecution department, accusing these platforms of violating the provisions regarding unauthorized operation of digital asset businesses in the Digital Asset Business Royal Decree B.E. 2561 (2018).
To protect investors' interests and prevent unauthorized trading platforms from becoming channels for money laundering by criminals, the Thai SEC has submitted the information of the above-mentioned five platforms to the Ministry of Digital Economy and Society. The Ministry will take action to block access for users in Thailand to these platforms starting from June 28, 2025.
The Thai SEC strongly urges investors holding assets on these platforms to properly manage their assets before access to the platforms is blocked. Meanwhile, the SEC also reminds the public and investors to be wary of the risks of using unauthorized digital asset service providers, as these platforms are not protected by Thai law, and users may face fraud and the risk of platforms being used for illegal fund transfers.
This tough enforcement action indicates that while encouraging financial innovation, the Thai government is also determined to rectify market order and ensure the compliant development of the cryptocurrency industry. Notably, global exchanges like Bybit are also actively seeking compliance operations in other jurisdictions, such as its recent acquisition of MiCA (EU Crypto Asset Market Regulation) approval in Austria to expand its business in the EU. This also reflects the tightening of global cryptocurrency regulations, where compliance has become key to the survival and development of exchanges.
Embracing Innovation
While severely cracking down on illegal platforms, the Thai government is also actively exploring the potential of cryptocurrencies to promote economic development, especially in its pillar industry—tourism.
Recently, Thailand's Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced a key plan: in the future, international tourists will be allowed to link their cryptocurrencies to credit cards for spending within Thailand. This measure aims to enhance payment convenience for tourists and attract the massive global clientele of cryptocurrency holders, thereby revitalizing Thailand's tourism industry.
According to the plan, international tourists can use their cryptocurrencies for payment, while the funds received by merchants will still be in Thai Baht. In most cases, merchants may not even notice that the transaction was initially completed using cryptocurrency, as the related conversion and settlement will be automatically handled by credit card companies and payment service providers. Pichai Chunhavajira emphasized that this mechanism, which does not involve direct exchange and use of Thai Baht, helps reduce potential risks to the domestic currency system, and once the necessary support systems are in place, it can be swiftly implemented. Currently, the Thai Ministry of Finance and the Bank of Thailand are actively reviewing the details of this plan, and it is expected to be officially launched once the necessary infrastructure and regulatory framework are in place.
The tourism industry plays a crucial role in Thailand's economy. According to data, the tourism sector's output value accounted for about 20% of Thailand's GDP before the pandemic. Although it experienced a decline after the pandemic, the recovery momentum remains strong. In early 2025 (from January to mid-May), Thailand's total tourism revenue exceeded 1.01 trillion Thai Baht (approximately 28 billion USD), with inbound international tourist numbers reaching 13.12 million. Although the tourism industry still faces some challenges, such as a decline in the number of tourists from specific markets and uncertain global economic prospects, the opening of cryptocurrency payments is seen as a new measure to stimulate growth.
In addition to applications in tourism, Thailand may also see new breakthroughs in the attitudes of traditional financial institutions towards cryptocurrencies. Recently, Kaweewut Temphuwapat, the new CEO of SCB10X, the venture capital arm of one of Thailand's largest banks, Siam Commercial Bank (SCB), released positive signals in an interview.
Temphuwapat stated that Thailand's innovative regulatory measures, especially the 'regulatory sandbox' mechanism, have paved the way for banks to hold crypto assets. He expects that in the future, Thai banks may pilot the direct inclusion of cryptocurrencies on their balance sheets within the regulatory sandbox. He emphasized, 'The willingness of regulators is present; they allow us to try first on a small scale.' If this concept is realized, it will mark a new stage in the integration of traditional finance and crypto assets in Thailand.
Temphuwapat also believes that the combination of artificial intelligence (AI) and cryptocurrencies will lead the next wave of innovation, and SCB10X has already incorporated such investments into its strategic vision. He also predicts that if the United States launches a more explicit regulatory framework for cryptocurrencies, it will drive more funds into Southeast Asian markets, including Thailand. He cited SCB10X's early investment in Ripple as an example, illustrating that his team has a long-term perspective on laying out Web3, and pointed out that Ripple's technology has been used in SCB's applications for 5 to 6 years.
In addition to the specific measures targeting cryptocurrencies mentioned above, the Thai government is also undertaking broader financial regulatory reforms. One of the core goals of the reform is to integrate the traditional capital markets and digital asset markets currently managed by different laws, with the expectation of establishing a unified legal management framework.
According to current regulations, life insurance companies and large funds holding hundreds of billions of Thai Baht in assets have mainly restricted their investment targets to government bonds in the past. The upcoming reforms are expected to relax these restrictions, release more funds into the market, and open up opportunities for investment in stocks and private sector assets. Furthermore, it is reported that the Thai Ministry of Finance is also considering reforming regulations on treasury stocks and ensuring the fairness of market trading through high-frequency trading regulations. To enhance regulatory efficiency, relevant departments are drafting a bill aimed at expanding the enforcement powers of the Thai Securities and Exchange Commission (SEC), which may allow it to directly submit significant cases to prosecutors in the future.
Thailand's Digital Economy
Thailand's recent series of actions in the cryptocurrency field clearly demonstrate its dual-track strategy of 'strict regulation' and 'active innovation'. On one hand, by blocking unauthorized exchanges, the Thai government is committed to protecting investors, maintaining financial order, and preventing illegal activities such as money laundering. On the other hand, by promoting crypto payments in tourism, exploring the possibility of banks holding crypto assets, and conducting broader financial regulatory reforms, Thailand is actively embracing the opportunities presented by the digital economy, striving to occupy a favorable position in the global digital transformation wave.
This seemingly contradictory policy combination reflects the Thai government's pragmatic attitude in the rapidly developing digital finance field, striving to seek a balance between innovation and risk. Whether Thailand can successfully seize the opportunities of this digital wave in the future will depend on the implementation effectiveness of subsequent policies and market reactions, which deserves continued high attention from all sectors. This also provides a reference case for other countries committed to digital transformation.