Thailand doesn’t mess around with crypto. If you’re running a crypto platform, trading on an unlicensed exchange, or even just holding funds in a wallet linked to a scam, the penalties in 2025 aren’t just steep-they’re life-altering.

What Happens If You Break the Rules?

Under Thailand’s new Royal Decree on the Digital Asset Businesses (No. 2) B.E. 2568 (2025), which took effect on April 13, 2025, non-compliance isn’t a slap on the wrist. It’s a criminal offense. 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 that make even the strictest regulators elsewhere look lenient.

For individuals caught using so-called "mule accounts"-crypto wallets or bank accounts knowingly used to receive stolen or scam funds-the punishment is jail time. Up to three years. Fines of up to THB 300,000 (around $8,400 USD). Or both. There’s no warning. No first-time offender exception. If law enforcement proves you knowingly participated in laundering funds, you go to prison.

And it’s not just users. Platform operators are on the hook too. Licensed exchanges must now monitor every transaction in real time. If a wallet linked to fraud appears on their system, they must freeze it. If a user reports being scammed, the platform must help refund the loss-even if the hack happened because the user clicked a phishing link. That’s right: platforms can be forced to pay back victims, even when they didn’t cause the problem. This joint liability model, borrowed from banking and telecom regulations, makes crypto platforms in Thailand more legally exposed than any other market in Southeast Asia.

Foreign Platforms Are Targeted First

Thailand didn’t just tighten rules for local companies. It went after foreign platforms head-on. Starting January 2025, any crypto service targeting Thai users-whether it’s in Thai language, accepts Thai baht, or runs ads on Google Thailand-must become a Thai legal entity. That means registering a company in Thailand, hiring a Thai director, opening a local bank account, and integrating with the national Anti-Money Laundering (AML) system.

On June 28, 2025, the SEC blocked access to five major foreign exchanges that refused to comply. Thai users lost instant access to their funds. The SEC warned them: move your assets to a licensed platform before the deadline, or risk losing them forever. Thousands scrambled. Many couldn’t withdraw in time. Their money is now frozen on platforms that no longer respond to Thai authorities.

There’s no gray area. If your platform has a Thai-language interface, accepts Thai payment methods, or uses Thai keywords in Google Ads, you’re legally considered to be operating in Thailand-even if your servers are in Singapore or the Cayman Islands. The SEC doesn’t need a court order to block you. MDES can shut you down with a single command.

What Licensed Platforms Must Do

There are only seven licensed crypto platforms left in Thailand as of June 2025, down from twelve at the start of the year. The rest quit. Why? Because compliance is brutal.

Licensed exchanges must:

• Perform strict Know Your Customer (KYC) checks-no exceptions, no loopholes
• Monitor every transaction for suspicious patterns using FATF-approved algorithms
• Block any wallet address linked to known scams or criminal activity
• Report all flagged activity to the Anti-Money Laundering Office (AMLO)
• Refund victims of fraud, even if the scam originated outside the platform
• Keep all transaction records for at least five years

Fail on any of these, and your license gets revoked. Operators can be criminally prosecuted. Fines can reach millions of baht. Some platforms have already shut down because they couldn’t afford the legal and technical upgrades.

One Thai trader told a local news outlet: "I used to trade on Binance. Now I’m on a local exchange. My KYC took three weeks. Every withdrawal gets flagged. But at least I know my money’s safe. I’d rather wait than lose it all."

The Hidden Costs of Compliance

Getting licensed isn’t cheap. Foreign companies report spending between THB 500,000 and THB 2,000,000 ($14,000-$56,000 USD) just to hire Thai lawyers, set up local entities, and pass SEC audits. The process takes six to twelve months. Most startups can’t afford that.

Even licensed platforms are struggling. The requirement to refund fraud victims-even when they’re not at fault-has forced some to raise trading fees to cover potential losses. Others have stopped offering certain tokens altogether. The result? Fewer choices. Higher costs. Less competition.

And then there’s the tax angle. From January 1, 2025, to December 31, 2029, individuals who trade on licensed exchanges get a full five-year exemption on capital gains tax. That’s a huge incentive to stay compliant. But after 2029? No one knows. The government hasn’t said. That uncertainty is making long-term planning impossible for traders.

Stablecoins? Only Under Strict Rules

In March 2025, the SEC gave limited approval to USDT and USDC-two of the world’s biggest stablecoins-but only for specific uses. You can’t use them to pay for coffee, rent, or online shopping. You can’t trade them on unlicensed platforms. You can’t even hold them in a non-licensed wallet if you’re a Thai resident.

These stablecoins are treated like regulated assets, not currencies. Their use is restricted to licensed exchanges and approved financial products. Even then, platforms must monitor every transaction linked to them. That’s why adoption is slow. Most Thai users still prefer Bitcoin or Ethereum on licensed platforms, where the rules are clearer.

What’s Next for Thailand’s Crypto Market?

The SEC has made it clear: this isn’t a temporary crackdown. It’s the new normal. By late 2026, analysts expect all unlicensed crypto activity to vanish from Thailand. The market will be small-only seven or eight platforms-but it will be clean.

Some experts warn this could stifle innovation. The high costs and unlimited liability may scare off startups. Others say it’s the only way to protect ordinary people. In 2024, Thailand saw over 1,200 crypto fraud cases. In 2025, that number dropped by 68%-just months after the new rules kicked in.

Trading volumes on licensed platforms rose 23% in the first half of 2025. People aren’t leaving crypto. They’re just leaving the wild west.

What Should You Do?

If you’re a Thai resident: only use SEC-licensed platforms. Check the official SEC website for the current list. Don’t trust Telegram groups, YouTube ads, or "guaranteed returns"-those are red flags. If you’re holding crypto on an unlicensed platform, move it now. Once it’s blocked, recovery is nearly impossible.

If you’re a foreign operator: don’t assume you’re safe because your company is overseas. If you market to Thai users, you’re in scope. Hire a Thai legal team. Budget for localization. Expect to spend six figures and two years just to get started. There’s no shortcut.

Thailand’s message is simple: if you want to play in this market, you play by our rules. No exceptions. No mercy. The penalties aren’t designed to scare people away-they’re designed to make crime unprofitable.

And so far, it’s working.