A Guide to Obtain Digital Asset Business License in Thailand

The Thai digital asset market is strictly regulated by the Securities and Exchange Commission (SEC) under the Royal Decree on Digital Assets B.E. 2561 (2018). Licensing requires dual approval from the SEC and the Ministry of Finance (MOF).

STEP 1: Entity Incorporation And Corporate Structure

1. Incorporate as a Thai Limited Company

• • Legal Entity: Must be incorporated as a Thai Limited Company through the Department of Business Development (DBD).
• • Shareholders: Minimum of 3 shareholders (can be juristic persons).
• • Local Presence: Must have a registered office address in Thailand.

2. Foreign Ownership Restrictions

• • Thai Majority Ownership Required: Minimum 51% Thai ownership
• • Foreign Business License: Extremely difficult to obtain for digital asset activities

3. Initial Corporate Requirements

• • Minimum Share Capital: Varies by license type (THB 1 million to THB 50 million)
• • Thai Bank Account: Must open corporate account before license application
• • VAT Registration: Required for most digital asset activities
• • Social Security Registration: Mandatory for Thai employees

STEP 2: Identify The Appropriate License Category

• 1. Digital Asset Exchange (DAX) - The minimum capital is THB 50 million for a centralized exchange and THB 10 million for non-asset-keeping exchanges. However, there are different tiers for exchanges that do not hold assets.
• 2. Digital Asset Broker (DAB) - The requirement is THB 25 million if the broker holds and controls client assets. It is THB 5 million if they hold client assets without control, and THB 1 million if they do not hold or control any client assets.
• 3. Digital Asset Dealer (DAD) - The capital requirement is THB 25 million if the dealer holds and controls client assets, and THB 5 million if they hold assets without control.
• 4. Digital Asset Fund Manager (DAFM) - The capital requirement is THB 25 million for asset-keeping managers or those serving non-institutional customers and THB 10 million for non-asset-keeping managers serving only institutional customers.
• 5. Digital Asset Advisory License (DAA) - Capital Requirement is THB 1 million

STEP 3: Pre-Application Preparation

Management And Personnel Requirements

1. Key Personnel Appointments (Fit and Proper Requirements)

• • Managing Director: Must be Thai resident with relevant experience
• • Compliance Officer: SEC-certified, minimum 2 years financial services experience
• • Risk Management Officer: Professional qualifications in risk management
• • Anti-Money Laundering Officer: AML certification required
• • Chief Technology Officer: Cybersecurity and blockchain expertise

2. Fit and Proper Criteria:

• • No criminal record (Thai and foreign jurisdictions)
• • No bankruptcy or insolvency history
• • Relevant experience in financial services or technology
• • SEC examination pass (for certain positions)

Technology Infrastructure Requirements

1. Core Technology Framework:

• • Trading Engine: High-performance, low-latency system
• • Wallet Infrastructure: Multi-signature cold storage (80% minimum offline)
• • KYC/AML Systems: Automated screening and monitoring
• • Cybersecurity Framework: ISO 27001 or equivalent standards
• • Business Continuity: Disaster recovery and backup systems
• • API Infrastructure: Secure, scalable integration capabilities

2. Third-Party Service Providers:

• • MAS-approved custody providers (if outsourcing)
• • Cybersecurity audit firms
• • Penetration testing providers
• • Blockchain analytics providers

Comprehensive Documentation

Applicants must submit comprehensive documentation covering:

• 1. Corporate Governance: Board structure, Committee Charters, and Internal Control Systems.
• 2. Business Strategy: Market analysis, 5-year financial projections, and product roadmap.
• 3. Risk Management: Enterprise Risk Management policy covering Operational, Liquidity, and Technology Risks.
• 4. AML/CFT: Detailed CDD/EDD procedures, Sanctions Screening, and Suspicious Transaction Reporting protocols.
• 5. Customer Protection: Clear Segregation of Assets procedures and Insurance Coverage (mandatory minimum of THB 50 Million for exchanges).

STEP 4: License Application Submission

• • Submission: Application is submitted to the SEC via their online portal.
• • Language: All official documents and procedures must be in Thai. Foreign documents require notarization, apostille, and certified Thai translation.
• • Timeline: The regulatory review can take 4–8 months, involving extensive due diligence and interviews.
• • Total Initial Fees: THB 100,000 to THB 200,000 (covering the base application fee, due diligence fee, and service-specific fees).

STEP 5: Taxation Overview

Official Portal

• • Website: SEC Thailand Website
• • Core Legislation: SEC Digital Asset Business Regulations