Thailand's 2025 Ban on Foreign P2P Crypto Platforms - What It Means

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TL;DR

• In April2025 Thailand passed emergency decrees that forbid any foreign, unlicensed peer‑to‑peer crypto platforms from serving Thai users.
• Five major exchanges - Bybit, 1000X, CoinEx, OKX and XT.COM - were blocked nationwide on 28June2025.
• Violations can bring up to three years in prison, a fine of 300,000baht, or both.
• Thai investors had only one month to withdraw or move assets before the shutdown.
• Domestic innovation continues: the government is still rolling out blockchain projects and a government‑backed stablecoin.

Thailand has always tried to walk a tightrope between embracing blockchain tech and protecting people from scams. The latest move - a full‑blown ban on foreign peer‑to‑peer (P2P) crypto platforms - pushes the country into the most restrictive corner of Southeast Asia. Below we break down why the ban happened, how it works, and what it means for you if you trade crypto in Thailand.

Why Thailand decided to act

Thailand's foreign P2P crypto platform ban is a regulatory response aimed at cutting money‑laundering risks and curbing online fraud. The Thai Securities and Exchange Commission (SEC Thailand) warned that many overseas platforms slipped through the cracks of the 2019 Digital Asset Business Act, offering Thai users a fast way to move money without proper AML/KYC checks.

SEC Secretary‑General Pornanong Budsaratragoon said the goal wasn’t to stifle innovation but to stop “digital asset scammers exploiting loopholes.” The crackdown came after a spike in crypto‑related fraud reports in early 2025, many of which involved foreign exchanges that weren’t subject to Thai oversight.

The legal backbone - emergency decrees and amendments

Two Royal Decrees, both issued on 13April2025, form the backbone of the ban:

1. Royal Decree on the Operation of Digital Asset Businesses (No.2), B.E.2568 - forces any foreign crypto service targeting Thai users to secure a license from the SEC.
2. Royal Decree on Measures to Prevent and Suppress Technology Crimes (No.2), B.E.2568 - gives the Ministry of Digital Economy and Society (MDES) power to block unlicensed platforms instantly, without needing a court order.

The decrees amended the original Digital Asset Business Act, tightening licensing, reporting, and enforcement rules. The SEC rolled out a clear compliance checklist in May, giving platforms a 30‑day window to apply for a license or shut down.

Who got blocked and how the shutdown unfolded

On 28June2025 the Ministry ordered internet service providers to block access to five exchanges that had not obtained a license:

• Bybit
• 1000X
• CoinEx
• OKX
• XT.COM

The SEC announced the block on 29May, giving users roughly a month to withdraw or transfer funds. Email alerts, push notifications from the SEC’s website, and posts on official Twitter and Facebook pages were the primary communication channels.

Penalties - what happens if you ignore the rule

Violating the new law carries heavy consequences:

• Up to three years in prison.
• A fine of up to 300,000baht (about$8,700USD).
• Both prison time and fine can be imposed simultaneously.

These penalties apply to platform operators, but the decrees also extend liability to banks, telecom firms, and even social‑media apps that enable illicit transactions without proper safeguards.

Impact on Thai users and businesses

For everyday traders, the ban meant scrambling to move assets before the deadline. Many reported “withdrawal bottlenecks” because the platforms were suddenly overwhelmed by traffic. Those who missed the window faced frozen balances that could only be released after a formal request to the SEC.

Cross‑border businesses felt the pinch even more. International invoices that previously used OKX for rapid settlement now have to route through a locally licensed exchange or a traditional bank, adding layers of AML/KYC paperwork and raising transaction costs by 2‑4% on average.

On the bright side, the crackdown cleared the playing field for domestic exchanges. Licensed Thai platforms reported a 15% surge in new user registrations within two months of the block, suggesting that many traders simply switched to compliant services.

How to stay compliant - a quick checklist for Thai investors

1. Verify that the exchange you use is on the SEC’s approved list (available on the SEC website).
2. Complete KYC verification if you haven’t already - the SEC now requires a photo ID, proof of address, and a source‑of‑funds declaration.
3. Move any holdings from unlicensed foreign platforms before the next enforcement deadline (the SEC routinely announces updates).
4. Keep transaction records for at least five years - the MDES can request them during a cyber‑crime investigation.
5. Consider using a locally licensed exchange that offers fiat on‑ramps; they often have lower withdrawal fees for Thai baht.

If you’re a business, work with a compliance consultancy familiar with SEC Thailand’s reporting format. The agency now requires daily transaction logs for any volume exceeding 5millionbaht.

What’s next - government projects that keep the crypto vibe alive

Even with the ban, Thailand isn’t turning its back on blockchain. In May2025 the Ministry announced a rollout of “G Tokens,” a government‑backed digital asset worth roughly 5billionbaht, intended for public‑debt financing. The plan is to issue the tokens on a secure, domestically controlled ledger.

Additionally, the Securities and Exchange Commission is piloting a blockchain‑based trading platform for securities firms, aiming to cut settlement times from three days to under an hour. A stablecoin backed by Thai government bonds is also in the pipeline, expected to launch in early2026.

Regional ripple effects

Thailand’s decisive move is being watched closely by neighbors like Vietnam, Malaysia, and the Philippines. All three have expressed interest in tightening AML regulations for crypto, but none have yet granted their ministries the sweeping blocking powers that MDES now enjoys.

If the ban successfully reduces crypto‑related scams (early data suggests a 12% drop in reported fraud cases Q22025), regulators across Southeast Asia may adopt similar decree‑style frameworks. That would create a more uniform, albeit stricter, environment for cross‑border digital asset flows in the region.

Key takeaways

• The Thailand crypto ban targets only foreign, unlicensed P2P platforms - domestic exchanges remain legal if they hold a SEC license.
• Penalties are severe; compliance is non‑negotiable.
• Investors must act fast to move assets from blocked platforms.
• Innovation isn’t dead - the government continues to fund blockchain projects and a state‑backed stablecoin.
• Regional regulators may follow Thailand’s lead, reshaping the Asian crypto landscape.

Frequently Asked Questions

Can I still use a foreign exchange if I’m in Thailand?

No. Any foreign exchange that targets Thai users must obtain a license from the SEC. Unlicensed platforms are blocked, and accessing them can lead to penalties.

What should I do with funds on Bybit or OKX right now?

Withdraw or transfer them to a SEC‑licensed Thai exchange before the next announced deadline. If the deadline has passed, you’ll need to file a release request with the SEC.

Will the ban affect crypto‑related jobs in Thailand?

The ban actually creates new jobs in compliance, legal, and blockchain development for licensed local firms. Demand for domestic talent is rising.

How can businesses comply with the new reporting rules?

Register with the SEC, implement AML/KYC software that captures the required data fields, and submit daily transaction logs for volumes over 5millionbaht. Working with a local compliance consultant is highly recommended.

Is Thailand planning to legalize a national digital currency?

Yes. The government is developing a stablecoin backed by sovereign bonds, slated for a 2026 launch. It will operate alongside existing digital asset regulations.

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• Thailand crypto ban
• foreign P2P platforms
• SEC Thailand
• digital asset regulation
• cryptocurrency Thailand