Severe Penalties for Crypto Non-Compliance in Thailand: What You Need to Know in 2025

Thailand isn't just regulating cryptocurrency anymore-it’s enforcing it with teeth. If you’re trading, operating, or even just holding crypto in Thailand in 2025, you’re under a microscope. The government doesn’t want you to break the rules. It wants you to follow them-or face serious consequences. And those consequences aren’t fines you can shrug off. They’re jail time, blocked accounts, and permanent loss of funds.

What’s Changed in Thailand’s Crypto Rules?

On April 13, 2025, Thailand rolled out the Royal Decree on the Digital Asset Businesses (No. 2) B.E. 2568. This wasn’t a gentle update. It was a full overhaul. The Securities and Exchange Commission (SEC) of Thailand, backed by the Ministry of Digital Economy and Society (MDES) and the Bank of Thailand, now has powers no other Southeast Asian country has granted to its regulators.

Suddenly, every crypto platform that even whispers to Thai users has to comply. That means if your website is in Thai, accepts Thai baht, or runs ads targeting Bangkok or Chiang Mai-you’re in Thailand’s jurisdiction. Even if your company is based in Singapore, Canada, or Estonia. The SEC doesn’t care where you’re registered. They care where your users are.

Who Gets Punished? Everyone.

The penalties don’t just hit big exchanges. They hit everyone involved.

• Individuals using mule accounts-wallets or bank accounts used to receive stolen or scam funds-can be jailed for up to three years and fined up to THB 300,000 (about $8,400 USD).
• Platform operators who fail to block suspicious transactions or report criminal activity can face criminal charges. Their licenses can be revoked. Their assets frozen.
• Foreign platforms that don’t set up a legal Thai entity, hire a Thai director, open a Thai bank account, and integrate with the national AML system are blocked overnight.

On June 28, 2025, the SEC blocked five major unlicensed crypto platforms. Users had until that date to withdraw their funds. After that? Gone. No refunds. No appeals. The SEC told users: “Move your money to a licensed exchange, or lose it forever.”

Why Are the Penalties So Harsh?

Thailand’s goal isn’t just to control crypto-it’s to eliminate it from the shadows. The country has seen a surge in crypto scams, money laundering, and fraud tied to unregulated platforms. In 2024, over THB 12 billion ($330 million USD) was stolen through fake crypto investment schemes targeting Thai citizens.

The new rules force platforms to act like banks. They must:

• Monitor every transaction in real time
• Freeze wallets linked to known criminals
• Refund victims of fraud-even if the platform didn’t cause the scam
• Share user data with law enforcement on demand

This isn’t optional. It’s mandatory. And if you miss one step? You’re liable. Not just for your own mistakes, but for losses caused by criminals using your platform. That’s unlimited financial risk. For a small operator, that’s a death sentence.

Foreign Platforms: The Localization Trap

If you’re a crypto company outside Thailand, you can’t just “serve Thai users.” You have to become Thai. From January 2025, every foreign platform targeting Thai customers must:

• Establish a legal company in Thailand
• Appoint a Thai national as director
• Open a corporate bank account with a Thai bank
• Integrate with the national AML monitoring system
• Pass SEC licensing and enter the regulatory sandbox

This isn’t paperwork. It’s a full operational overhaul. Legal firms in Bangkok charge between THB 500,000 and THB 2,000,000 ($14,000-$56,000 USD) just to help you navigate this. Many foreign platforms simply walked away.

Between January and June 2025, the number of licensed crypto exchanges in Thailand dropped from 12 to 7. The rest couldn’t-or wouldn’t-pay the price.

What About Users?

Regular traders aren’t off the hook. If you use an unlicensed platform after June 28, 2025, you’re breaking the law. You won’t be jailed-but your funds could vanish. And if you’re caught using a wallet tied to a scam, you could be investigated as an accomplice.

On licensed platforms, users report better security. Fraud cases have dropped. But there’s a cost. KYC checks are invasive. Withdrawals take days. Transaction limits are tight. Some users say it feels like banking in 1995.

But here’s the trade-off: if you’re hacked or scammed on a licensed platform, you might get your money back. The law requires them to refund victims. That’s not something you’ll find on Binance or KuCoin if you’re in Thailand.

Stablecoins and Taxes: The Silver Lining?

There’s one bright spot. In March 2025, the SEC approved USDT and USDC for limited use on licensed platforms. You can trade them. You can hold them. But you still can’t use them to buy coffee or pay rent. Thailand doesn’t want crypto as money. It wants crypto as an investment.

And here’s the kicker: if you trade crypto on a licensed exchange, you pay zero capital gains tax until December 31, 2029. That’s a five-year window to profit tax-free. It’s a clear signal: “Play by our rules, and we’ll reward you.”

After 2029? Nobody knows. The government hasn’t said. But for now, it’s a powerful incentive to stay compliant.

What Happens Next?

Thailand isn’t slowing down. The SEC is already looking at DeFi protocols, NFT marketplaces, and crypto lending platforms. If you’re building something new in crypto, and Thai users might use it-you need to plan for compliance now.

Industry analysts predict unlicensed crypto activity in Thailand will vanish within 18 months. The market will be smaller, but cleaner. Fewer platforms. Higher fees. Less innovation. But also less fraud.

Thailand’s model is extreme. But it’s working. Trading volumes on licensed platforms jumped 23% after the crackdown. People moved their money. They chose safety over freedom.

Bottom Line: Compliance Isn’t Optional

If you’re a Thai citizen, don’t touch unlicensed platforms. Your money isn’t safe. Your legal exposure is real.

If you’re a crypto business, don’t assume you can ignore Thailand. The SEC doesn’t need your permission to block you. They just need your IP address.

The message is clear: In Thailand, crypto isn’t a gray area anymore. It’s black and white. Follow the rules-or face the consequences.