New Thai decree regulates overseas digital asset services

According to the announcement, the decree aims to regulate and oversee businesses related to digital assets that operate outside Thailand but provide services to individuals within the Kingdom. This measure is expected to aid in the prevention and suppression of technology-related crimes.

The announcement stated that this is an urgent and unavoidable measure necessary to safeguard national security, public safety and the country’s economic stability.

The decree amends Section 26 of the Royal Decree on Digital Assets BE 2561 (2018) to read as follows:

“Digital asset business operators under paragraph one shall include those operating outside the Kingdom of Thailand who provide services to persons within the Kingdom, except for services specified by the Securities and Exchange Commission (SEC).”

The amendment also introduces Section 26/1, which defines circumstances under which a digital asset business operator under Section 26, paragraph three, is considered to be providing services to persons in the Kingdom:

1. The operator’s content is displayed in Thai, either fully or partially.
2. The operator’s domain name ends with “.th”, “.ไทย”, or any name that references Thailand, the Kingdom, or the Kingdom of Thailand, or uses a Thai domain name.
3. The operator allows users to pay in Thai baht or to receive payments via a bank account or electronic wallet in Thailand.
4. There is a clause stating that Thai law shall govern the digital asset transactions, or that legal proceedings shall be conducted in a Thai court.
5. A service fee is paid to a web indexing service specifically to help users in Thailand access the operator’s services.
6. The operator has an office, agency or personnel providing support or assistance to users in Thailand.
7. Any other characteristic as announced by the SEC.