Overview of Blockchain and Encryption Ecosystem Development in Thailand

Cryptocurrency market activity is high

In 2023, a well-known cryptocurrency data analysis platform had an average monthly visit of 648,000 in Thailand, accounting for 0.94% of the national population. This ratio even exceeds that of the United States by 0.21 percentage points, indicating a strong interest among the Thai people in encryption assets.

Considerable trading volume, concentrated market share

According to data statistics, from January to October 2023, the total trading volume of major digital asset trading platforms in Thailand reached 116.4 billion USD, approximately 410 billion THB. Among them, a leading exchange accounted for 77.04% of the market share, while the other two platforms accounted for 21.60% and 1.36% respectively. Notably, one of the platforms was acquired by a large bank in 2023 and was renamed.

User activity continues to rise

Thailand ranks tenth in the global cryptocurrency adoption index. This ranking takes into account user activity on centralized exchanges, P2P trading, and DeFi protocols.

• The number of exchange users has rapidly increased, reaching 2.94 million, accounting for 4.27% of the national population.
• A well-known international trading platform has an average monthly visit of over 110,000 times in Thailand.
• A popular Web3 wallet has accumulated nearly 800,000 downloads in Thailand.
• The decentralized trading platform had an average monthly visit of 35,000 during the bull market.
• The NFT trading platform saw an average monthly visit of 48,000 times during the peak period of 2022.

The regulatory framework is clear, and all seven types of licenses are complete.

The Thailand Securities and Exchange Commission (SEC) has adopted a follow-up strategy, referencing the practices of countries such as the United States and Japan, to establish a clear regulatory framework for digital assets. The main regulation is the "Emergency Decree on Digital Asset Business."

The regulatory scope includes:

• Regulated Assets: Tokens, Digital Currencies
• ICO issuance and related portal services
• Digital asset business operations: exchanges, brokers, fund management, etc.

Currently, Thailand has seven types of licenses related to digital assets, covering multiple fields such as exchanges, brokers, fund management, and consulting services.

It is worth noting that cryptocurrencies are currently classified as commodities, subject to a 7% transaction tax. The industry is working to push for their redefinition as an investment category.

The ecosystem is thriving, and traditional enterprises are actively laying out their plans.

Thailand's digital asset activities are mainly concentrated in trading, brokerage/dealers, and tokenization, led by several core enterprises. In recent years, many traditional large enterprises have also begun to enter the digital currency market, including leading banks and energy companies.

Main participants include:

• Exchange: In addition to local platforms, a well-known international exchange has also jointly established a new encryption asset platform with a local energy company.
• ICO Portal: Both banks have entered this business.
• Brokers/Traders: Several licensed institutions are active in the market.
• Consulting Services: Professional institutions have obtained relevant licenses.
• Venture Capital: Major banks have established dedicated encryption investment departments.

The Web3 ecosystem is starting to take shape

Local Web3 projects in Thailand mainly focus on GameFi and the metaverse. Among them, a certain gaming guild project has attracted the attention of several internationally renowned investment institutions, becoming one of the most influential gaming guilds in Southeast Asia. In addition, some NFT projects are also quite popular within the community.

Overall, Thailand's Blockchain and encryption ecosystem is in a rapid development phase, with a gradually improving regulatory framework. Traditional financial institutions and enterprises are actively participating, laying a solid foundation for future growth.