All cryptocurrency sellers in Thailand must now register with the Securities and Exchange Commission (SEC) after new regulations took effect.
Under the new rules, anyone selling unauthorized tokens faces fines of at least 500,000 baht (about USD 15,705) or up to twice the value of the transaction, and may also face up to two years in prison. Submitting fraudulent registration documents could lead to prison terms of up to five years.
The regulations were published in the Royal Gazette and officially came into force on Sunday, according to the Bangkok Post.
These laws have been in development since at least March, when the cabinet approved them. Finance Minister Apisak Tantivorawong said the rules were needed to curb money laundering, tax evasion and other criminal activity. The Council of State was directed to prepare a draft for cabinet approval.
Protect Investors
The minister emphasized that the intent of the law is to protect investors—not to prohibit initial coin offerings (ICOs) or other digital asset transactions—although the Bank of Thailand has advised financial institutions to avoid direct involvement in cryptocurrency dealings.
The Digital Asset Act (BE 2561), which contains 100 sections, gives the SEC authority to regulate the sector. The draft underwent several amendments before becoming law.
Certain asset types, such as some forms of electronic data, were removed from the final text, and sellers now have 90 days to register with the SEC, according to the Bangkok Post. Profits from cryptocurrency transactions will be subject to a 15% tax under the new rules.
The SEC and the Finance Ministry are expected to issue more detailed regulations and implementing guidelines to put the decree into practical effect.
The commission will be responsible for overseeing ICOs and cryptocurrency businesses, setting registration fees for digital assets and their operators, and establishing procedures to resolve disputes or other issues that arise in the market.
Thailand has generally been supportive of the cryptocurrency industry compared with many countries, but this law addresses a long-standing gap in formal regulation and compliance requirements for the sector.