Thailand’s regulatory stance on digital assets has evolved from cautious observation to proactive embrace, positioning the country as a key player in Southeast Asia’s fast-growing crypto landscape. This shift aligns with broader economic goals, including boosting tourism and attracting fintech innovation. A pivotal moment in this transformation came on May 13, 2025, when Tether, the issuer of the world’s largest stablecoin USDT, announced the launch of its gold-backed token, XAU₮, on Maxbit, a licensed digital asset exchange in Thailand.
Each XAU₮ represents ownership of one troy ounce of physical gold, stored in secure vaults and fully audited—marking a significant step toward bridging traditional finance with blockchain-based asset tokenization.
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The Regulatory Evolution: From Caution to Crypto-Friendly Policies
Thailand’s journey into digital asset regulation began in earnest with the enactment of the Digital Asset Business Decree on May 14, 2018. This landmark legislation classified digital assets into two primary categories:
- Cryptocurrencies – used as mediums of exchange (e.g., Bitcoin, USDT)
- Digital Tokens – representing rights or ownership (e.g., security tokens, utility tokens)
The decree laid the foundation for comprehensive oversight by the Securities and Exchange Commission of Thailand (SEC), regulating both token issuance and digital asset service providers such as exchanges, custodians, and investment advisors.
This early regulatory clarity helped Thailand stand out in a region where many countries remained hesitant. By establishing clear rules, the Thai government fostered investor confidence and attracted major global players like Tether.
Tether’s Strategic Expansion in Thailand
Tether’s growing presence in Thailand reflects a calculated strategy to align with compliant markets and expand its suite of real-world asset (RWA) offerings.
In March 2025, the Thai SEC officially recognized USDT as an approved cryptocurrency for use on regulated platforms—paving the way for wider institutional adoption. Around the same time, Thailand’s Deputy Prime Minister announced plans to leverage blockchain technology to enhance the country’s tourism sector, including enabling crypto payments at major attractions.
Earlier, in December 2023, Tether partnered with Bitkub, Thailand’s largest cryptocurrency exchange by trading volume, to launch an educational initiative focused on stablecoins and blockchain literacy. The program includes courses, public awareness campaigns, and interactive learning modules aimed at improving financial inclusion.
Notably, USDT is the most traded stablecoin on Bitkub, underscoring its dominance and trust among Thai users.
Understanding Thailand’s Token Issuance Framework
The Thai SEC maintains a nuanced approach to token classification, ensuring that innovation is balanced with investor protection.
Regulated Token Offerings
Tokens that qualify as investment instruments or are intended for listing on exchanges fall under strict regulation. These include:
- Real estate-backed tokens
- Infrastructure project tokens
- Sustainability-linked tokens
- Debt tokens
To issue such tokens, entities must:
- Obtain prior approval from the Thai SEC
- Submit a detailed prospectus
- Meet stringent corporate governance and financial disclosure requirements
A notable success story emerged in 2022 when real estate developer SC Asset raised approximately 300 million THB (~$8 million) through a Security Token Offering (STO), becoming the first officially sanctioned STO in Thailand.
Exemptions from Regulation
Certain token types are exempt from full registration, provided they meet specific criteria:
- Central Bank Digital Currencies (CBDCs) issued by the Bank of Thailand
- Consumer utility tokens used for goods or services within closed ecosystems
- Limited private offerings targeting accredited investors or a small group of high-net-worth individuals (max 50 people), with total value under 20 million THB and duration under 12 months
These exemptions encourage innovation while minimizing systemic risk.
Oversight of Digital Asset Exchanges
To operate legally in Thailand, digital asset exchanges must comply with rigorous standards set by the Ministry of Finance and the SEC.
Key requirements include:
- Being a locally registered entity
- Holding a license issued by the Ministry of Finance
- Maintaining a minimum paid-up capital of 100 million THB (~$2.7 million)
- Complying with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations
- Implementing robust KYC (Know Your Customer) and CDD (Customer Due Diligence) procedures
- Reporting suspicious transactions promptly
Additionally, exchanges are prohibited from engaging in proprietary trading to prevent conflicts of interest—a critical safeguard for market integrity.
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Why Thailand Appeals to Global Crypto Firms
Several factors make Thailand an attractive hub for digital asset businesses:
- Proactive regulatory framework: Clear guidelines reduce uncertainty for investors and operators
- Strong tourism economy: Over 25 million international visitors annually create demand for frictionless cross-border payments
- High crypto adoption: Ranked 16th globally in Chainalysis’ 2024 Cryptocurrency Adoption Index
- Favorable business environment: Government incentives and startup-friendly policies
Moreover, Tether’s decision to list XAU₮ on a regulated Thai exchange signals growing confidence in the country’s ability to support sophisticated financial products like tokenized commodities.
Frequently Asked Questions (FAQ)
What is XAU₮?
XAU₮ is a gold-backed digital token issued by Tether. Each token is pegged to one troy ounce of physical gold held in allocated storage, combining blockchain transparency with tangible asset value.
Is USDT legal in Thailand?
Yes. As of March 2025, the Thai SEC officially recognized USDT as an approved cryptocurrency for use on licensed digital asset platforms.
Can foreigners launch a crypto project in Thailand?
Yes, but foreign entities must establish a local registered company and obtain necessary licenses from the Thai SEC if their project involves regulated activities like token issuance or exchange operations.
How does Thailand regulate stablecoins?
Stablecoins like USDT are treated as cryptocurrencies if they function as payment mechanisms. They must be listed on approved exchanges and undergo due diligence regarding reserves and issuer transparency.
Are there tax implications for crypto trading in Thailand?
Yes. Profits from digital asset trading are subject to capital gains tax. The Revenue Department requires traders to report income and pay applicable taxes—non-compliance can result in penalties.
What role does blockchain play in Thailand’s tourism industry?
The government is exploring blockchain for identity verification, loyalty programs, and crypto-based payments at tourist sites to improve efficiency and attract tech-savvy travelers.
Final Thoughts: A Model for Responsible Innovation
Thailand’s balanced approach to digital asset regulation—supportive yet cautious—offers a blueprint for emerging economies navigating the complexities of Web3 integration. By welcoming innovations like Tether’s XAU₮ while enforcing strong consumer protections, Thailand demonstrates how tradition and technology can coexist.
For global firms eyeing Southeast Asia, Thailand presents not just market potential—but a regulatory environment built on clarity, compliance, and long-term vision.
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