Evolution of Crypto Industry in Thailand

Topics related to crypto regulations are important. Without proper regulations, it will be tough to make cryptocurrencies more popular around the world. Thankfully, cryptocurrency service providers are actively working with Thai authorities. It is worth mentioning that another cryptocurrency service provider has obtained a license from authorities. As a result, currently, there are 13 licensed cryptocurrency service providers in Thailand.

People who are not familiar with this topic should take into account that the Royal Decree on the Digital Asset Businesses B.E. 2561 regulates the crypto sector in Thailand.

Based on the information taken from the Royal Decree, there are several types of businesses. Let’s have a look at them. The first type is a digital asset exchange. The second one is a digital asset broker. To finish off, the last one is the digital asset dealer.

The Thai Securities and Exchange Commission (SEC) has approved six digital asset exchanges. Bitkub, BX, Satang Pro, Huobi Thailand, Zipmex, as well as ERX.

Crypto providers in Thailand

Interestingly, the Royal Decree on the Digital Asset Businesses distinguishes between cryptocurrency and digital tokens. To explain, the purpose of cryptocurrencies is to serve as a medium of exchange for the acquisition of goods, services, or other rights.

However, the purpose of a digital token is to specify the right of a person to participate in an investment in any project or business or to acquire specific goods, services, or other rights based on the agreement between the issuer and the holder.

Interestingly, out of the six licensed digital asset exchanges, five of them have the authority to work with cryptocurrencies and digital tokens. Furthermore, Bitcoin Co. Ltd. halted trading on September 30, 2019, and this exchange is currently in the process of returning licenses.

The country is also regulating initial coin offerings (ICO) via licensed “ICO portals”. It is worth mentioning that the Royal Decree defines an ICO portal as a provider of an electronic system for facilitating the offering of newly issued digital tokens. Currently, there are four ICO portals: Longroot, T-box, Bitherb, and SE Digital.