Thailand Cryptocurrency Exchange License

In 2017, the Thai authorities introduced new progressive legislative standards that increased the transparency and control of cryptocurrency turnover. Exchanges, exchangers and other sellers of non-fiat funds must pass a registration with the regulator – the Securities Commission (SEC). It issues a license for the cryptocurrency exchange, controls the rules implementation, including the payment of taxes.

The authorities charge a fine of USD 15,500 (equivalent) and even threaten entrepreneurs with imprisonment for procrastination of registration and taxation. The crypto funds retailers are exempt from VAT paying, but for other market participants, it is 7% and is paid, including, for operations with virtual money. Capital gain tax (15%) is also paid, traders pay 10-30% from profit, depending on the circumstances.

Up to 2021, Thailand was one of the most progressive states in relation to the crypto field. Licenses for cryptocurrencies – Bitcoin, Ethereum, Litecoin, Stellar, Ripple, etc. are officially issued down there. But, in 2021, the regulator issued new stricter standards for dealing with cryptocurrencies according to which a physical presence is now required to open a bank account for carrying out operations with cryptocurrencies. Personal identification has become compulsory while carrying out exchange transactions too. The serious point here is an obligation of reporting for digital asset exchanges about any crypto transaction in the amount exceeding THB 1.8 million (equivalent to USD 58,000). Such exchanges should also maintain a separate database for carrying out inspections by the regulator.

The SEC does not hide its readiness to accept other non-fiat currencies for consideration, provided that issuers and exchangers have fulfilled the requirements of the law and the regulator. ICO activities in the country are regulated by a separate division of the Commission. Now, the regulator especially emphasizes compliance with AML legislation. This makes the process of dealing with cryptocurrencies a bit complicated but more transparent. Issuers must provide the SEC with a business project, contribute a share capital of USD 150,000 and develop a structure that meets the commission’s standards.

Licensing Terms

The license for the cryptocurrencies exchange in the jurisdiction is issued to Thai companies that have a physical address for registration, forwarding correspondence, and an office – at least a virtual one. The government has not signed agreements on automated information exchange, it is not necessary to comply with the AEOI. Companies possess a right to attract foreign investments. For successful registration and licensing you need to:

  • hire at least one director who is not “involved” in criminal offenses or bankruptcy cases;
  • share capital between at least three shareholders;
  • open an account in a Thai bank (preferably in Bangkok) and put a deposit of 5,000 US dollars or euros;
  • provide a package of documents confirming the technical capacity, the implementation of AML and CFT rules.

Upon receipt of a license for cryptocurrency and an operation of the exchanger for a year, it must prepare and submit to the SEC a report on the activities, perform an audit and provide an opinion on the audit of the financial statements. By contacting Prifinance company, you can receive support in licensing, legalizing, and running cryptocurrency business in Thailand with an emphasis on all peculiarities of the local legislation.

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