THAILAND Law and Practice Contributed by: Wongsakrit Khajangson, Panupan Udomsuvannakul, Koraphot Jirachocksubsin and Pitchaya Roongroajsataporn, Chandler Mori Hamada
10.6 Staking The provision of staking services for cryptocur - rencies is prohibited in Thailand. It is allowed only for specific purposes related to the use of digital tokens, as discussed in 10.5 Regulation of Blockchain Asset Trading Platforms. 10.7 Crypto-Related Lending In Thailand, the SEC prohibits digital asset busi - ness operators from providing or supporting deposit-taking and lending services. 10.8 Cryptocurrency Derivatives Currently, there are no specific regulations regarding cryptocurrency derivatives in Thailand 10.9 Decentralised Finance (DeFi) The term “DeFi” is not defined under Thai law. Thus, there is no specific regulation on DeFi platforms or transactions. However, on a case- by-case basis, if any transaction related to DeFi relates to the purchase and sale of digital tokens and cryptocurrency or other regulated business, operators related to the DeFi business are sub - ject to the Digital Assets Decree. 10.10 Regulation of Funds Thai law is silent on how funds can be invested in blockchain assets. 10.11 Virtual Currencies Virtual currencies are not defined under Thai law. However, under the Digital Assets Decree, “cryp- tocurrency” is defined as “an electronic data unit built on an electronic system or network which is created for the purpose of being a medium of exchange for the acquisition of goods, services, or other rights, including the exchange between digital assets” . Cryptocurrency is different from digital tokens in the sense that it is a medium of exchange, while digital tokens, which are anoth - er type of blockchain asset defined under the
Digital Assets Decree, have the main purpose of determining the right to participate in an invest - ment or to acquire goods or services. See also 10.3 Classification of Blockchain Assets . 10.12Non-Fungible Tokens (NFTs) To establish whether an NFT will be regulated under Thai law, a determination of whether that NFT falls within the definition of “digital token” under the Digital Assets Decree is needed. Cer - tain NFTs may be considered utility digital tokens if such NFTs grant the holder a right to obtain any goods, services or assets. Under the SEC’s guidelines issued on 6 January 2022, certain types of NFTs are exempted from NFT regulations and the Digital Assets Decree, including NFTs that are utility tokens with ready- to-use underlying products or services as of the date of offering. To further elaborate, an NFT that is exempted is that which is an asset itself, being inseparable, and does not represent any rights or the intention to be utilised as a medium of exchange (eg, an NFT that is created by stor - ing a digital file on an Interplanetary File System (IPFS) issued for the convenience of exchange, and such digital file and the NFT must be trans - ferred together, be inseparable and cannot be modified). In addition, the SEC issued regulations in August 2024 introducing the regulatory approach that certain types of ready-to-use utility tokens, including some types of NFTs, will continue to be exempted from the Digital Assets Decree, and business operators providing related services thereof will no longer fall under the digital asset business licence requirement. Such exempted NFTs must be those providing the right to receive specific products or services for utilisation or
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