Severe Penalties for Crypto Non-Compliance in Thailand: What You Need to Know in 2025

Posted By Tristan Valehart    On 29 Nov 2025    Comments (2)

Severe Penalties for Crypto Non-Compliance in Thailand: What You Need to Know in 2025

Thailand isn’t just regulating cryptocurrency anymore - it’s erasing the gray areas. If you’re trading, holding, or operating a crypto platform in Thailand in 2025, you’re playing in a high-stakes game where mistakes don’t come with warnings. They come with prison, fines, or frozen assets - and there’s no appeal once the system locks in.

What Happens If You Break the Rules?

The Royal Decree on the Digital Asset Businesses (No. 2) B.E. 2568 (2025), which took effect April 13, 2025, turned Thailand’s crypto rules into a legal minefield. The Securities and Exchange Commission (SEC) now has direct power to shut down platforms without a court order. That’s not a suggestion. It’s a legal tool. For individuals caught using so-called “mule accounts” - wallets or bank accounts moved through to launder scam money - the punishment is clear: up to three years in jail, a fine of up to 300,000 THB (around $8,400 USD), or both. This isn’t just for organized crime. It applies to anyone who knowingly lets their wallet be used by someone else, even if they didn’t start the fraud. If you lent your wallet to a friend to “help them out,” and that friend got scammed, you could be charged.

Foreign Platforms Are Targeted First

Thailand isn’t waiting for foreign crypto firms to come to them. They’re hunting them down. Any platform that offers Thai-language support, accepts Thai baht, runs ads targeting Thai users, or processes payments from Thai IP addresses is now considered operating illegally - unless licensed.

On June 28, 2025, the SEC blocked access to five major unlicensed exchanges. Thai users were given a deadline to pull their funds out. After that date, those funds vanished from the platform’s reach. No refunds. No appeals. No legal recourse. The SEC didn’t ask. They didn’t warn again. They just cut the connection.

To even operate legally, foreign platforms must:

  • Set up a legal Thai company
  • Hire a Thai national as a director
  • Open a bank account in Thailand
  • Integrate with the national Anti-Money Laundering (AML) system
  • Pass FATF compliance checks
  • Join the SEC’s regulatory sandbox
That’s not a checklist. That’s a full corporate relocation. Many international firms decided it wasn’t worth it. Between January and June 2025, the number of licensed crypto platforms in Thailand dropped from 12 to 7.

Licensed Platforms Face Unlimited Liability

Even if you’re licensed, you’re not safe. Thailand’s system makes platform operators legally responsible for losses caused by fraud - even if the platform wasn’t hacked or negligent.

Think about that. If a user gets scammed by a phishing email and sends their coins to a criminal wallet, and that wallet later deposits funds into your exchange, you might be required to refund the victim. Even if you had no way of knowing. Even if you followed every rule.

Licensed platforms must now:

  • Automatically freeze any wallet linked to known criminal activity
  • Share user data with law enforcement on demand
  • Block transactions from blacklisted addresses
  • Pay out refunds to fraud victims
  • Keep real-time monitoring systems running 24/7
This isn’t just compliance. It’s financial risk on an industrial scale. Smaller operators can’t afford the insurance, legal teams, or tech infrastructure to handle unlimited liability. That’s why the market is shrinking - not because people stopped trading, but because the cost of staying legal is crushing.

A Thai family faces a mountain of KYC paperwork while a shadowy SEC figure watches from behind.

KYC Is No Longer Just a Form

Know Your Customer (KYC) rules in Thailand aren’t about verifying your ID. They’re about proving your entire financial history.

Users on licensed exchanges report being asked for:

  • Proof of income
  • Bank statements from the past six months
  • Explanation of the source of every crypto deposit
  • Links to social media profiles
  • Photos of their government ID with a handwritten note and today’s date
Delays are common. Withdrawals that used to take minutes now take days. Some users say their accounts were frozen for weeks while the platform checked if their Bitcoin came from a wallet once used in a scam - even if they bought it legally years ago.

The trade-off? Fewer scams. More trust. But at what cost? Many Thai traders say they feel watched. Not protected. Watched.

The Tax Incentive - A Temporary Trap?

There’s one bright spot: capital gains tax. From January 1, 2025, to December 31, 2029, individuals who trade on SEC-licensed exchanges pay zero tax on profits. That’s a five-year window to make money without the government taking a cut.

But here’s the catch: this only applies to trades on licensed platforms. If you’re using an unlicensed exchange - even if it’s based overseas - you’re still liable for taxes. And if you get caught, you’ll owe back taxes plus penalties.

The government isn’t giving you a gift. They’re creating a funnel. Move your money to the right platform, and you get a break. Stay outside, and you risk everything.

A surreal marketplace where only licensed crypto exchanges glow, while unlicensed ones vanish into mist.

What About Stablecoins Like USDT and USDC?

In March 2025, the SEC quietly approved USDT and USDC for use on licensed platforms - but only as trading pairs, not as payment. You can’t use them to buy coffee, pay rent, or tip a delivery driver. You can’t even use them to send money to friends unless it’s through a licensed wallet.

This isn’t a sign of openness. It’s control. The government wants you to trade crypto - but only where they can track every click, every transfer, every profit.

Real People, Real Consequences

On Reddit, Thai users describe panic. One trader posted: “I had $12,000 in Binance. I didn’t know it wasn’t licensed here. On June 29, I couldn’t log in. My money is gone. No one answers my emails.”

Another wrote: “I moved everything to a Thai exchange. Now I can’t withdraw without a 72-hour wait. They ask why I’m sending money to my own bank. I’m not a criminal. But they treat me like one.”

Meanwhile, legal firms in Bangkok are busy. Specialized consultants charge between 500,000 and 2,000,000 THB ($14,000-$56,000 USD) just to help a foreign crypto company get licensed. That’s not a fee. It’s a barrier to entry.

What’s Next?

Thailand isn’t slowing down. The SEC is already looking at DeFi protocols, NFT marketplaces, and crypto lending platforms. The next targets are already on the list.

The message is clear: if you’re involved in crypto in Thailand, you have two choices:

  1. Get fully licensed - and accept the cost, the scrutiny, and the liability.
  2. Stay outside - and risk losing your money, your freedom, or both.
There is no middle ground. No loopholes. No grace period.

The era of crypto anonymity in Thailand is over. The system is watching. And it’s armed.

Can I still use Binance or Coinbase in Thailand?

No. As of June 28, 2025, Binance, Coinbase, and all other unlicensed platforms are blocked by the Thai government. If you try to access them from within Thailand, you’ll get an error message. Any funds left on these platforms after the deadline are likely lost. Only SEC-licensed exchanges are legal.

What happens if I accidentally used a mule account?

If you knowingly allowed someone else to use your wallet or bank account to receive crypto - even if you didn’t know it was from a scam - you can be charged with a crime. Penalties include up to three years in jail and a fine of up to 300,000 THB. Ignorance isn’t a defense. The law assumes you should have known.

Is there a way to avoid the strict KYC?

No. All licensed exchanges in Thailand require deep KYC - including proof of income, source of funds, and personal documentation. If you want to trade legally, you must comply. There are no anonymous or light-KYC options left in the country.

Can I trade crypto on a foreign exchange while living in Thailand?

Technically, yes - but it’s risky. You can’t access unlicensed platforms from within Thailand; they’re blocked. If you use a VPN to bypass the block, you’re violating the law. If caught, you could face fines or criminal charges, especially if large amounts are involved. The government is actively tracking users who try to circumvent the ban.

Why are stablecoins like USDT allowed but not usable as payment?

The Bank of Thailand still bans cryptocurrencies as payment. USDT and USDC are only permitted for trading on licensed exchanges as asset pairs. This lets the government monitor crypto activity while preventing it from replacing the Thai baht. It’s a controlled experiment - not an opening.

What’s the penalty for a crypto business that doesn’t get licensed?

Unlicensed platforms face immediate blocking, fines, and criminal prosecution of operators. The Ministry of Digital Economy and Society can shut them down without court approval. Operators can be jailed for up to five years and fined up to 5 million THB ($140,000 USD) if found guilty of operating without a license.

Does the tax exemption apply to mining or staking?

No. The five-year capital gains tax exemption only applies to trades conducted on SEC-licensed exchanges. Mining rewards, staking income, and airdrops are still taxable under existing income tax rules. The government hasn’t clarified how these will be reported, but they are not covered by the exemption.

Can I move my crypto to a licensed exchange after the June 28 deadline?

If your funds are still on a blocked platform, you cannot access them. The SEC does not guarantee recovery. Once a platform is blocked, Thai users lose all legal rights to withdraw. The only safe move is to transfer before the deadline. After that, it’s too late.

Tags: