Thailand Cryptocurrency Market Research Report
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Thailand Cryptocurrency Market Research Report
Thailand's cryptocurrency adoption rate ranks among the highest globally, on par with other countries.
Navigating Web3 tides with focused insightsAuthor: MIIX Capital
Thailand is a multi-ethnic country and an export-oriented economy with extremely pronounced domestic wealth disparity. Persistent low inflation is causing the depreciation of Thailand's currency and continued economic contraction. At the same time, Thailand has maintained a high adoption rate of cryptocurrency since 2017. The government has been continuously promoting the implementation of related regulatory policies, hoping to alleviate some economic development issues through open crypto market policies. This provides favorable market and policy conditions for the local establishment and growth of the crypto industry.
1. Macroeconomic Indicators and Current Situation
Thailand is a middle power in global affairs and a founding member of ASEAN, ranking highly on the Human Development Index. Measured by purchasing power parity, it is the second-largest economy in Southeast Asia and the 23rd largest in the world.
In 2014, a report by Credit Suisse ranked Thailand as the third most unequal country in the world, behind only Russia and India. The top 10% of wealthy individuals hold 79% of the nation’s assets, and the combined net worth of the 50 richest families accounts for 30% of GDP. In 2016, Thailand ranked 87th on the Human Development Index and 70th on the inequality-adjusted Human Development Index.
1.1 Geography and Population Size
The Kingdom of Thailand, commonly known as Thailand, has its capital in Bangkok. Located in the southern central part of the Indochinese Peninsula, it borders the Gulf of Thailand (Pacific Ocean) to the southeast and the Andaman Sea (Indian Ocean) to the southwest. It shares borders with Myanmar to the west and northwest, Laos to the northeast, Cambodia to the east, and Malaysia to the south. The country has a tropical monsoon climate and a topography that slopes from north to south. With a total area of 513,000 square kilometers and a coastline of 2,705 kilometers, Thailand is divided into five regions and consists of 77 provinces.
According to Worldometer's analysis of the latest United Nations data, as of January 2, 2024, Thailand’s population stands at 71,844,093. Urban residents account for 52.0% of the total population (37,322,064 people in 2023). Thailand’s population represents 0.89% of the world’s total. The country comprises over 30 ethnic groups. The Tai people are the dominant group, making up 40% of the population, followed by Lao, Chinese, Malay, Khmer, and hill tribes such as Hmong, Yao, Gui, Wen, Karen, Shan, Semang, and Sakai. Over 90% of the population practices Buddhism, while the Malay community follows Islam, and smaller numbers practice Christianity, Catholicism, Hinduism, and Sikhism.
1.2 Economic Structure and Scale
Thailand is an emerging economy and considered an emerging industrialized nation, ranking as the second-largest economy in Southeast Asia after Indonesia. Its three main economic sectors are agriculture, manufacturing, and services. Thailand follows a free-market policy and relies heavily on external markets—particularly China, the U.S., and Japan. Agricultural products are one of the country’s primary sources of foreign exchange revenue.
During the 1980s, rapid development in manufacturing industries such as electronics led to sustained high economic growth. By 1996, Thailand was classified as a middle-income country. The country exports goods and services valued at over $105 billion annually. Major export items include automobiles, computers, electronics, rice, textiles, footwear, fisheries products, rubber, and jewelry.
1.3 GDP Ranks 9th in Asia
According to official data from the World Bank, Thailand’s GDP reached $495.42 billion in 2022, accounting for 0.21% of the global economy, with a growth rate of 2.6%, making it the ninth-largest economy in Asia.
Thailand’s economy is heavily dependent on exports, which account for more than two-thirds of its gross domestic product (GDP). According to the Bank of Thailand, only 6% of companies in the country were involved in export activities between 2006 and 2016, yet these exporters generated 60% of the nation’s total income.
1.4 GDP per Capita Ranks 4th in Southeast Asia
In 2022, Thailand’s GDP per capita was $6,278.35, equivalent to 50% of the global average. From 1960 to 2022, Thailand’s average GDP per capita was $2,976.71, reaching a historical high of $6,453.89 in 2019.
Thailand ranks mid-tier in terms of wealth distribution in Southeast Asia. Based on GDP per capita, it is the fourth wealthiest country in the region, behind Singapore, Brunei, and Malaysia.
1.5 Inflation Rate Continues Below Forecast Levels
In December 2023, Thailand’s consumer prices declined by 0.83% year-on-year, marking the third consecutive month of deflation following a 0.44% drop in November, exceeding the expected decline of 0.3%. This represents the most severe deflation in 34 months and the eighth consecutive month outside the central bank’s target range of 1% to 3%. The main driver was government measures leading to lower energy prices, particularly electricity and gasoline.
Core inflation in December was 0.58%, unchanged from November and the lowest level since January 2022, compared to an expected rise of 6%. The Ministry of Commerce reported that inflation for 2023 was 1.23%, with forecasts for 2024 ranging from -0.30% to 1.7%. Monthly CPI fell by 0.46%.
According to Trading Economics’ global macro model and analyst expectations, Thailand’s inflation rate is projected to be -0.10% quarter-on-quarter by the end of this quarter. In the long term, inflation is expected to hover around 0.40% in 2024 and 0.30% in 2025. This implies that unless strong government interventions occur, Thailand will continue facing currency depreciation, economic contraction, and widening wealth gaps throughout 2024.
1.6 Thailand’s Legal Tender
Thailand’s currency is the Thai Baht (THB), the 10th most traded currency globally and one of the strongest in Southeast Asia. The baht is gaining popularity among forex traders. Thailand’s solid economic fundamentals—including a robust tourism sector and strong exports—have underpinned the baht’s consistent performance.
A developing economy and a growing middle class make Thailand an attractive destination for business. The Bank of Thailand manages the baht, and its strong policy framework helps maintain exchange rate stability.
2. Thailand’s Users and Market
2.1 Adoption Index Ranks 10th Globally
Thailand performs well in civilian adoption, ranking 10th in Chainalysis' "2023 Global Crypto Adoption Index." According to the "2022 Global Digital Overview Report," Thailand is among the countries with the highest proportion of internet users holding cryptocurrency.
2.2 Crypto User Penetration Continues to Grow
According to Statista.com data dated January 11, 2024: As of 2023, Thailand had 13.02 million cryptocurrency users, representing approximately 18.1% of the population holding crypto assets. After ten consecutive years of growth, this figure is projected to reach 17.67 million users, hitting a new peak by 2028. Notably, the number of users in the fintech segment “cryptocurrency” has grown steadily over recent years.
2.3 Young Males Are the Core User Group
There is limited user data available on Thailand’s crypto market. However, a 2022 report by Datareportal in collaboration with Hootsuite and WeAreSocial indicated that Thailand leads globally in the share of internet users who own cryptocurrency, engage in online shopping, and purchase groceries online. Among internet users aged 16 to 64 in Thailand, a significant portion (20.1%) own cryptocurrency—the highest rate globally.
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Crypto investors are predominantly male, making up 52.9% of all investors; cryptocurrency has become an urgent investment vehicle for Thais;
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Approximately 75% of cryptocurrency investors are between 18 and 24 years old, while only 1.1% are aged 55 or older;
3. Thai Users’ CEX Preferences
Under regulations set by the Securities and Exchange Commission of Thailand (SEC), there is an officially registered and licensed list of CEXs permitted to operate in Thailand:
3.1 Bitkub – SEC-Recognized CEX
Located in downtown Bangkok, Bitkub has received official recognition from the Securities and Exchange Commission of Thailand (SEC) and enjoys excellent credibility. According to Coingecko.com, Bitkub is Thailand’s largest cryptocurrency exchange, offering THB trading pairs and capturing 75.4% of the country’s exchange market share.
3.2 Zipmex – Thailand’s Second-Largest CEX
Founded in 2018 and headquartered in Singapore, Zipmex is a cryptocurrency exchange serving both retail and institutional investors. It leverages blockchain technology to provide secure investment, savings, and spending opportunities across Southeast Asia. According to Coingecko.com, as of 2022, Zipmex held a 14.78% market share in Thailand based on trading volume.
3.3 ORBIX – Most Convenient-to-Use CEX
ORBIX is a reliable digital asset trading and exchange center, recognized as Thailand’s first regulated digital asset exchange. It offers THB-crypto trading services, enabling users to trade digital assets more securely.
3.4 Bitazza – CEX with Broker Participation
According to Coingecko.com, Bitazza ranks as the third-largest cryptocurrency exchange by trading volume, with an 8.52% market share. Bitazza is a regional digital asset platform in ASEAN, composed of affiliated exchanges and brokers across Asia, each holding local operating licenses. Customers can directly access personal brokers (not just emails or bots) linked to their trading accounts.
Bitazza enables easy access to local digital asset financial and custodial services, along with fast and seamless deposits, withdrawals, and conversions between local fiat, crypto assets, and back to fiat.
3.5 Binance Operates Locally via GulfBinance
Binance is the world’s largest cryptocurrency exchange by trading volume, with 172 million users. GulfBinance is a joint venture between Binance and Gulf, having obtained a digital asset operator license from Thailand’s Ministry of Finance. Its digital asset platform is regulated by the country’s SEC and began operations in Thailand in Q4 2023. GulfBinance plans to launch a locally compliant digital asset exchange and brokerage services.
3.6 Upbit – Korean CEX with Operating License
Upbit is another centralized cryptocurrency exchange authorized to operate in Thailand. Founded in 2017, Upbit is operated by Dunamu, one of South Korea’s highest-valued startups. Upbit also holds licenses in South Korea (where it commands a 48% market share), Singapore, and Indonesia, aiming to become one of the leading centralized exchanges in Southeast Asia.
4. Thailand’s Web3 Projects
4.1 Token Unlocks – Token Data Analytics Platform
Token Unlocks developed a token analytics platform integrating on-chain and off-chain data to deliver optimal user experience. Their services include structured and labeled on-chain/off-chain token data and customized on-chain monitoring for tracking token projects. This enables traders to make informed investment decisions by accessing accurate token information and staying updated on project developments.
4.2 GuildFi – Player-Empowering Gaming Guild
GuildFi is a gaming platform empowering all gaming communities and creating interoperability across metaverses. Backed by investors such as Coinbase Ventures, Animoca Brands, and Pantera, GuildFi is building infrastructure to connect players, guilds, and investors, accelerating game financing within the blockchain economy—from Play-to-Earn games to the Metaverse.
GuildFi operates its own Treasury Zone, comprising Growth Fund, Development Fund, and Venture Fund segments. It also features a Tool Zone for users to analyze relevant gaming data. Although still trailing YGG in total scale, GuildFi matches or exceeds it in functional completeness and popularity, indicating strong potential.
4.3 Together.ai – Decentralized Cloud Service Platform
Together.ai operates a technology service platform focused on providing decentralized cloud services for artificial intelligence. Its platform specializes in building large-scale, user-friendly, and open-source models. This helps researchers, developers, and companies leverage and enhance AI through an intuitive platform covering data, models, and computing resources.
4.4 Token X – Funding and Asset Tokenization Service Provider
Token X Co., Ltd., a subsidiary of SCBX, provides ICO portal services and digital asset tokenization solutions. The company aims to become a successful partner in tokenization, offering services including tokenization consulting, blockchain technology development, and blockchain network support. Its client base primarily consists of companies seeking more flexible funding solutions. ICOs offer issuers greater flexibility in choosing underlying assets, which can include traditional real estate, rights, or services.
4.5 3Landers – Collectible NFTs Centered on Adventure and Collaboration
3Landers is a collectible NFT project centered on community, adventure, and collaboration. Each 3Lander exists as a unique, non-fungible token (NFT) on the Ethereum blockchain, composed of a unique combination of traits and an underlying "DNA".
Owning a 3Landers NFT grants you membership in the 3Lander world and community—a space dedicated to building meaningful, long-term connections through collaboration, adventure, creation, construction, and imagination.
4.6 Bitkub Chain – Ethereum-Fork Public Blockchain
Developed by Bitkub Blockchain Technology Co., Ltd., Bitkub Chain is a blockchain platform forked from Ethereum, maintaining comparable technical standards. Its native token, Bitkub Coin (KUB), is listed on multiple exchanges.
The platform supports tokens based on the KAP-20 standard, such as KKUB, KUSDT, KBTC, LUMI, DK, etc. Leveraging Ethereum-compatible datasets, Bitkub Chain simplifies the development of decentralized applications (DApps). It features fast block validation and confirmation in seconds and maintains low transaction fees through the Proof of Staked Authority (PoSA) consensus mechanism.
5. Thailand’s Crypto Venture Capital
Thailand’s venture capital landscape is dominated by traditional large enterprises, including the country’s two major banks—Siam Commercial Bank (SCB) and Kasikorn Bank (KBANK). SCB10X is the venture arm of SCB, while KX is the VC initiative launched by KBTG, a subsidiary of KBANK.
5.1 SCB 10X
In Thailand, traditional banks can enter the crypto space through subsidiaries. SCBX (Siam Commercial Bank) operates through SCB10X under this framework and is one of Thailand’s most successful crypto-focused venture firms.
Established in 2020 and headquartered in Bangkok, SCB10X focuses on investing in projects involving big data analytics, machine learning, blockchain, fintech, decentralized finance, digital work, and lifestyle innovations. Its portfolio spans startups in the U.S., China, Israel, and Southeast Asia. SCBX has also launched TokenX as a Web3 project incubator, with investments including Together.ai, Visai.ai, and Ai21.com.
5.2 KBTG
Kasikorn Business Technology Group (KBTG) launched a $100 million fund, KXV, dedicated to investing in startups related to Web3 and artificial intelligence. The fund is overseen jointly by Krating Poonpol, Chairman of KBTG Group, and Jom Vimolnoht, Managing Director of KXVC.
The fund primarily aims to identify and support AI, Web3, and deep-tech fintech startups globally, with a possible focus on the Asia-Pacific region. In the Web3 space, KXVC will actively consider various technological startups, including those innovating in zero-knowledge proofs and liquid staking derivatives.
KBTG is the technology division of Kasikorn Bank (KBank), which ranks second in Thailand by asset size.
6. Thailand’s Cryptocurrency Regulatory Framework
Prior to 2018, Thailand adhered strictly to a policy of banning cryptocurrency transactions. However, after observing a surge in domestic ICO activity in 2017, the Securities and Exchange Commission of Thailand (SEC) conducted several months of public consultations and decided to introduce guidelines for cryptocurrencies and initial coin offerings (ICOs), preparing to allow crypto trading.
6.1 Evolution of Crypto Industry Regulations
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May 2018: The Emergency Decree on Digital Asset Businesses took effect, designating the SEC as the official regulator of all digital assets in Thailand and requiring all parties involved in digital asset transactions to register with the SEC and obtain business licenses.
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June 2018: Thailand released digital asset regulatory guidelines, allowing legal trading of seven major cryptocurrencies and permitting ICO issuers to apply for issuance and digital token provision.
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July 2018: The SEC issued standards supporting digital asset business operations, stipulating that crypto firms operating in Thailand must obtain a digital asset business operating license from the Ministry of Finance.
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August 2020: The SEC mandated strict KYC standards for crypto trading accounts, requiring crypto firms to establish KYC tiers to accommodate different types of customers.
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February 2021: The SEC required crypto firms to comply with investor knowledge testing standards, mandating knowledge assessments for users before providing crypto services and denying service to those failing the test.
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May 2021: The SEC ruled that DeFi platforms issuing digital tokens must comply with regulations, requiring any DeFi project in Thailand that issues digital tokens for user services to obtain a business license and comply with the Digital Asset Act.
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August 2021: The SEC mandated that crypto firms protect user assets, requiring multi-signature authorization for withdrawals or transfers, prohibiting the misuse of user funds, and forbidding the placement of user funds in commercial banks to earn interest.
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February 2022: The SEC revised advertising guidelines, restricting misleading promotional claims, requiring clear and appropriate crypto advertisements published only on official channels, and banning ads in other public areas.
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March 2022: The SEC issued the "Service Standards for Digital Asset Business Operators," prohibiting the use of cryptocurrency to pay for goods or services to avoid risks to Thailand’s financial stability.
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December 2022: The SEC released a draft of the "Regulatory Standards for ICO Gateways and Digital Token Issuance," refining oversight principles for ICO gateways and related digital token issuance.
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March 2023: The SEC issued the "Overall Digital Asset Regulatory Policy," covering comprehensive regulations across the entire crypto industry chain, including primary market token issuance and secondary market exchange operations.
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November 2023: The SEC updated standards for debt-based ICOs and ICO infrastructure, introducing new categories for debt-based and infrastructure-based ICO products, requiring their creditworthiness to be assessed and disclosed via ICO gateways, along with due diligence and asset valuation for ICO projects.
From 2018 to 2023, Thailand’s cryptocurrency regulatory policies have undergone multiple refinements and updates, with detailed oversight extending into every aspect of the crypto industry. Whether it’s enterprise registration, digital asset issuance, cryptocurrency trading, user asset protection, regulation of crypto derivatives, KYC due diligence, ICO gateways, investor guidance, or exchange registration guidelines, these measures demonstrate that Thailand is not merely regulating the crypto industry but actively embracing and deeply engaging with it to rapidly guide the domestic crypto market’s development.
6.2 Strict Ban on Corporate Crypto Acceptance
Since April 2022, the SEC has prohibited businesses from accepting cryptocurrency to maintain economic stability. Although the 7% tax on digital asset investments was lifted, Thailand explicitly banned crypto firms from offering staking and lending services in September 2022.
This contrasts sharply with Thailand’s supportive stance toward blockchain technology and poses challenges to its goal of becoming a major hub for blockchain innovation. In a joint statement, the SEC and the Bank of Thailand expressed concerns about risks associated with widespread use of digital assets for goods and services transactions.
Additionally, Thai banks are prohibited from directly participating in cryptocurrency trading. First-time crypto investors must undergo a unique verification process using a "dip-chip" machine to scan national ID cards in person. For transactions exceeding 100,000 THB, exchanges must retain data for at least ten years to prevent money laundering.
6.3 Taxation on Crypto Activities
For individuals, any cryptocurrency trading or gains obtained through mining, staking, or other crypto activities in Thailand are subject to withholding tax and personal income tax.
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Withholding tax: Gains from crypto activities (e.g., investing, mining) are subject to a 15% withholding tax;
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Personal income tax: This is progressive, generally ranging from 5% to 37%. All Thai residents or foreigners residing in Thailand for more than 180 days must pay personal income tax on crypto-derived income;
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Individuals with annual turnover exceeding 1.2 million THB must pay a 7% value-added tax (VAT), with partial VAT refunds available under certain circumstances;
Generally, investors in Thailand need only pay withholding tax, VAT, and personal income tax as required. However, additional taxes may apply depending on residency status or special conditions, so investors should verify their obligations during annual tax filings to avoid omissions.
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Operating a crypto business in Thailand requires payment of corporate income tax, VAT, withholding tax, and special business tax.
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Corporate income tax in Thailand is tiered: 20% for net profits below 1 million THB; 25% for profits between 1 million and 3 million THB. However, companies entering Thailand often qualify for various tax exemptions depending on specific circumstances;
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Companies with annual turnover exceeding 1.2 million THB must pay 7% VAT, though partial refunds may be available under certain conditions;
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Withholding tax is exempt for crypto businesses legally operating in Thailand, but foreign companies or foreign legal entities must pay the standard 15%;
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Special business tax has no specific rules yet but is expected to be a variant of VAT, meaning crypto businesses will only need to pay this one tax;
7. Conclusion
Located in Southeast Asia, Thailand has an export-dependent economy and ranks 9th in Asia by GDP. Driven by agriculture, manufacturing, and services, Thailand has evolved from an underdeveloped nation into a "middle-income" country. Its legal tender, the Thai Baht, is one of the strongest currencies in Southeast Asia.
Thailand ranks among the global leaders in cryptocurrency adoption, standing shoulder-to-shoulder with other top nations. Currently, 13.02 million people (9.3% of the population) own cryptocurrency. Thailand’s crypto ecosystem is highly developed, with traditional banks entering the space through venture funds and investments in crypto-native and AI startups—further driving growth in crypto adoption and market development.
The Thai government holds a notably positive stance toward cryptocurrency, recognizing it as a "digital asset" regulated by the SEC and requiring operators to obtain licenses. While Thai citizens can buy and sell crypto, businesses are prohibited from accepting it as payment.
Particularly in regulation, Thailand is ahead of much of the world. For crypto investors, whether trading cryptocurrencies or engaging in DeFi and derivative products in Thailand, there is minimal concern about asset security on regulated centralized platforms. Consumers are also better protected from crypto scams. As the industry continues to grow, Thailand’s crypto ecosystem will likely generate a magnet effect, attracting increasing numbers of projects and capital, fostering innovative technologies and products that drive broader industry advancement.
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