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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
Thailand has had significant growth in the crypto currency sector, allowing many crypto currency-related Start-ups to earn a lot of money in recent years. Digital assets have generally been encouraged and supported by the government, which has allowed most digital asset businesses to be conducted under Thai laws, with a few exclusions, such as those on financial products with underlying digital assets and other related activities. However, there are strong opposing opinions within the financial sectors—including the Bank of Thailand—that crypto currencies have unacceptably high price volatility, risk cyber theft and personal data leakages, are tools for money laundering, and may lead to financial instability.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
Generally, the Emergency Decree on Digital Asset Businesses, B.E. 2561 (2018) (the Digital Asset Decree) is the main regulation in Thailand governing digital asset businesses, including the issuance, and offering of digital assets to Thai investors. The Securities and Exchange Commission (SEC) acts as the regulator for the decree. All digital asset business operators are subject to the decree’s regulatory and licensing requirements, with a few exceptions as stipulated by the SEC.
Cryptocurrency exchange market
Under the Digital Asset Decree, a digital asset exchange is defined as a centre or network established for the purpose of trading or exchanging digital assets, operating by matching orders or arranging for a counterparty, or providing a system for or facilitating a person who wishes to trade or exchange digital assets to be able to enter into an agreement, or match the order in the normal course of business.
Under the Digital Asset Decree, a digital asset exchange can be categorised into two (2) types: digital token exchanges and crypto currency exchanges. Each type requires a separate license from the SEC.
To obtain a digital asset exchange license, a business operator must establish a company in Thailand with the minimum required paid-up registered capital, and the company must not operate as a digital asset dealer. The license fee is THB 2.5 million (approx. USD 73,114).
Wallet provider
Wallet provider businesses are not currently regulated under the Digital Asset Decree and thus are not subject to the decree’s licensing requirements. However, in January 2021 the SEC held a public hearing relating to custodial wallet providers and indicated it may issue a regulation to regulate wallet providers.
NFTs related service.
Digital asset exchanges in Thailand are not permitted to list NFTs, as the SEC has prohibited digital asset exchanges from trading NFTs and some other types of tokens.
Nevertheless, the SEC’s guidelines for NFTs confirm that NFTs are not regulated under the Digital Asset Decree unless they have characteristics similar to utility tokens, such as determining the right to receive specific goods, services, or other rights, in which case they would be subject to an initial coin offering (ICO)