Overview of Thailand's Blockchain and Encryption Ecosystem

1. Cryptocurrency Market Overview

1. Popularity of data analysis platforms

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. It is noteworthy that Thailand's per capita visits are 0.21% higher than those of the United States.

2. Encryption asset trading scale

According to data statistics, from January to October 2023, the total trading volume of Thailand's major digital asset trading platforms was approximately $116.4 billion (about 410 billion Thai Baht). Among them, a leading exchange accounted for 77.04% of the market share, while the other two major platforms accounted for 21.60% and 1.36%, respectively. It is worth mentioning that one of the platforms was acquired by a large bank and renamed in 2023.

3. The interest of users in digital assets is growing.

In the global cryptocurrency adoption index ranking, Thailand is ranked tenth. This ranking takes into account users' activities on centralized exchanges, peer-to-peer trading, and decentralized finance protocols.

• Exchange users: Thailand's digital asset exchange has over 2.94 million user accounts, accounting for 4.27% of the national population, which has reached more than half of the stock market user count.

• Wallet Usage: From September 2020 to August 2023, a well-known encryption wallet had over 790,000 downloads in Thailand, peaking at 88,539 downloads in November 2021, possibly influenced by the GameFi and metaverse craze.

• Decentralized trading: During the bull market of 2021, Thai users visited a well-known decentralized trading platform an average of 35,000 times per month, but the traffic decreased after the bear market set in.

• NFT Market: During the NFT boom in 2022, a major NFT trading platform in Thailand had an average monthly visit of 48,000 times, reaching a peak of 65,000 times in July, and then declined as the market cooled down.

II. Regulatory Framework

Thailand has implemented a clear regulatory framework for the digital asset sector, mainly overseen by the Securities and Exchange Commission (SEC). Key regulations include the "Emergency Decree on Digital Asset Business." The regulatory scope includes:

• Regulated Assets: cryptocurrencies and tokens
• Business activities: ICO issuance, exchange operation, brokerage, fund management, etc.

A total of seven types of licenses related to digital assets have been established, including exchanges, brokers, dealers, fund management, consulting services, custody wallet providers, and ICO portals.

Currently, cryptocurrencies are temporarily classified as commodities and are subject to a 7% transaction tax. The industry is advocating for their redefinition as investment products similar to stocks.

3. Ecosystem Development

Digital asset activities in Thailand are mainly concentrated in trading, brokerage/distribution, and tokenization, dominated by several core participants. In recent years, many traditional large enterprises have also begun to enter the digital currency market, including major banks and energy companies.

main participants

1. Exchange: In addition to the major local trading platforms, a well-known international exchange has established a new platform in joint venture with a local energy company, has obtained a license but has not yet commenced operations.

2. ICO Portal: Both banks have entered the ICO portal business. Additionally, there are companies providing investment token sales channels for real estate projects.

3. Brokers/Dealers: Multiple licensed institutions are conducting business, including bank-affiliated platforms and joint ventures with energy companies.

4. Consulting Services: A certain company has become the first institution to obtain a digital asset consulting service license, providing research reports and industry analysis.

5. Venture Capital: Major banks are setting up dedicated cryptocurrency investment departments.

Web3 Development

Local Web3 projects in Thailand are mainly focused on the game finance/metaverse sector. Representative projects include a well-known gaming guild with a strong lineup of investors, making it 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 rapidly developing, with a gradually improving regulatory framework and active participation from traditional financial institutions, laying a solid foundation for future growth.