Thailand Digital Asset Sandbox Benefits in 2025

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Introduction:

As part of its continued strategy to become a regional leader in digital finance, Thailand continues to develop and improve its regulatory framework for digital assets.

Recent developments from the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC), such as adding USDT and USDC to the approved list of cryptocurrencies, create new opportunities for foreign companies to enter the Thai market.

To further test and expand the use of digital assets, Thailand has established two regulatory sandboxes. These are administered separately by different authorities. The sandbox overseen by the BOT focuses on innovations in payments and financial infrastructure, while the SEC oversees activities in the digital asset market, including trading platforms and token issuance.

Key Points

Thailand has established regulatory sandbox frameworks through the BOT and SEC that allow both domestic and foreign companies to test digital asset innovations in a controlled environment with formal oversight.
Foreign fintech companies can participate in these sandboxes to enter Southeast Asian markets with reduced risk, collaborate with local companies and initiatives, test new financial models, and access early advantages in Thailand’s digital finance ecosystem.
The Thailand Board of Investment (BOI) offers significant benefits for fintech companies including corporate tax exemptions for up to 8 years, permission for 100% foreign ownership, and streamlined visa processes.
BOI-promoted fintech categories include digital payments, P2P lending platforms, blockchain technology applications, and insurtech solutions, all aligned with Thailand’s digital economy goals.
Thailand presents an attractive market for fintech development due to high digital adoption rates, widespread mobile payment usage, and cryptocurrency acceptance.

A Favorable Climate for Crypto Innovation

While the United States, under the Trump administration, maintains a supportive stance toward crypto, Thailand is taking a more structured and proactive approach. Through the creation of the regulatory sandbox frameworks by the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC), Thailand is creating a controlled environment for both domestic and foreign firms to test and develop digital asset innovations. These programs allow companies to test and develop ideas while being under formal regulatory oversight.

Regulatory Sandbox Frameworks: BOT and SEC

To further test and develop the acceptance and possibilities of the use of Digital Assets in Thailand, two separate programs, known as sandboxes have been created.

These regulatory sandboxes are structured around two primary frameworks, each administered by a separate authority. The Bank of Thailand (BOT) oversees innovations related to payments and financial infrastructure, while the Securities and Exchange Commission (SEC) supervises activities tied to digital asset markets, such as trading platforms and token issuance.

The Bank of Thailand’s Enhanced Regulatory Sandbox

The Bank of Thailand’s Enhanced Regulatory Sandbox, introduced in June 2024, permits both licensed and non-licensed entities to pilot financial innovations. Projects must be limited in scope, operate within a defined time frame (typically under one year), and include a clear exit strategy.

Participants must also engage in pre consultation with the BOT, particularly if stablecoins are involved, due to their complex legal classification under the Currency Act B.E. 2501 and the Payment Systems Act B.E. 2560.

This sandbox is focusing on technologies like:

Global stablecoin exchanges: Facilitating international crypto transactions with stable value.
Programmable payments: Transactions executed automatically when predefined conditions are met.
Asset tokenization: Converting rights to an asset into a digital token.

SEC Sandbox for Digital Asset Businesses

The Thai SEC launched a regulatory sandbox in August 2024, specifically for digital asset businesses. This sandbox caters to a wide range of services including:

Cryptocurrency trading platforms
Investment advisory and fund management
Tourist crypto wallets
Programmable payments using digital assets

To participate, applicants must demonstrate that their innovations are research-backed, align with Thailand’s capital market goals, and contribute to financial service development.

Although the sandbox allows certain activities without a license, core services like issuing investment or utility tokens still require SEC approval, unless the tokens are on the regulator’s approved list (e.g., BTC, ETH, USDT, USDC).

Why Foreign Companies Can Benefit from these Sandboxes

For foreign fintech and blockchain companies, these sandbox programs represent an opportunity to:

Enter the Southeast Asian market with controlled risk and regulatory support
Collaborate with local financial institutions and regulators
Test new financial models in a real-world environment with legal flexibility
Gain early mover advantage in a growing digital asset ecosystem

The controlled, consultative nature of the sandbox framework also limits legal exposure during the testing phase, making it an attractive option for companies exploring cross-border use cases, decentralized finance (DeFi) applications, or digital payment infrastructure.

However, to be eligible for participation in these sandboxes, companies must demonstrate strong technological readiness, legal compliance, and risk management capabilities.

With these pilot programs already in motion and more set to launch throughout 2025, Thailand’s regulatory sandboxes are becoming a key tool for developing Thailand’s Digital Asset readiness while also encouraging innovation and attracting global investment. Foreign companies exploring fintech, blockchain, and digital payment solutions should consider Thailand not only as a testing ground but as a gateway to the wider Asian digital economy.

Other Opportunities for Fintech Companies in Thailand

Thailand’s commitment to developing a leading digital economy goes beyond just the sandbox initiatives. For foreign fintech companies looking to establish a long-term presence in Thailand, the Thailand Board of Investment (BOI) offers a range of benefits and incentives.

Under Category 5, which covers software, digital services, and fintech innovations. These incentives are designed to encourage technological development, attract foreign direct investment, and position Thailand as a regional hub for financial innovation.

Eligible Fintech Business Activities for a BOI Promotion

Foreign companies operating in, or considering the fintech sector in Thailand may be eligible for BOI promotion if their activities fall under the approved business categories. These include:

Software Industries

Embedded or High Value-Added Software: This includes systems integrated into hardware for specialized functions, such as IoT devices or real-time analytics tools.
Enterprise Software and/or Digital Content: Solutions like SaaS platforms, enterprise resource planning (ERP) tools, and business intelligence applications are included in this category.

Digital Services (Including Fintech)

This broad category includes a wide range of technology based services, including platform development, digital architecture, cloud-based operations, and industry-specific fintech solutions such as:

Insurtech: Technology-driven insurance platforms and solutions.
Regtech: Tools that simplify compliance and regulatory reporting.
Medtech: Digital platforms for healthcare payments or diagnostics.
Agritech: Financial technologies tailored for the agricultural sector.

Examples of Promoted Business Categories within the Fintech Sector

The BOI has identified several high-potential fintech sub-sectors that qualify for promotion:

Digital Payments and E-Wallets: These platforms are considered key to Thailand’s push toward a cashless society. The BOI promotes businesses offering secure and accessible digital payment solutions.
Peer-to-Peer (P2P) Lending Platforms: Online lending platforms that connect borrowers and lenders directly are supported for their role in improving access to finance.
Blockchain Technology: Companies utilizing blockchain for smart contracts, secure transactions, identity verification, or supply chain transparency are highly encouraged under BOI policies.
Insurtech: Startups and enterprises that bring digital transformation to the insurance industry are eligible for incentives.

Benefits of the BOI for Fintech Companies in Thailand

By obtaining a BOI promotion, fintech companies gain access to a range of benefits that make establishing and operating a business in Thailand significantly more streamlined and efficient compared to regular company structures.

BOI Tax Incentives

Exemption from corporate income tax for up to 8 years
Tax exemption on dividends earned during the tax holiday
Carry forward of losses for up to 5 years, to be used after the tax exemption period

BOI General Business Benefits

100% Foreign Ownership: Unlike most Thai Limited Companies, BOI promoted projects can be entirely foreign owned.
Foreign Business Certificate (FBC): The FBC exempts BOI companies from the restrictions established in the Foreign Business Act, allowing greater freedom in business operations.
No Thai-to-Foreigner Employee Ratio: BOI companies are not subject to the 4:1 Thai-to-foreigner staff requirement, allowing them to hire foreign specialists without quota limitations.
Streamlined Visa and Work Permit Process: Foreign staff benefit from simplified visa and work permit applications through the BOI’s One Stop Service Center in Bangkok.

Our Thoughts

Thailand is an increasingly attractive destination for fintech companies, thanks to a supportive regulatory environment, proactive government initiatives, and strong digital adoption rates.

The regulatory sandboxes have created a safe space for fintech innovation. The Board of Investment (BOI) also offers substantial incentives, including tax exemptions and visa support for foreign talent, which makes market entry and operations easier for fintech firms.

The “Digital Thailand” initiative aligns government support with digital transformation, emphasizing fintech as a key area of economic growth.

Thailand is also highly engaged in digital finance, with high smartphone usage and widespread use of mobile payments like PromptPay and TrueMoney. Thailand ranks among the world’s top adopters of cryptocurrency, supported by clear regulations from the Securities and Exchange Commission (SEC) for digital assets and exchanges.

FAQs

Please see here for some FAQs relating Digital Assets in Thailand

What is Thailand’s Digital Asset Regulatory Sandbox?

A controlled testing environment that allows companies to test digital asset innovations for up to one year under regulatory supervision.

Can foreign companies participate in Thailand’s digital asset sandbox?

Yes, both domestic and foreign companies can apply to participate in Thailand’s regulatory sandboxes operated by the BOT and SEC.

What is the difference between BOT and SEC sandboxes in Thailand?

BOT oversees payment and financial infrastructure innovations (like programmable payments), while SEC supervises digital asset markets, trading platforms, and token issuance.

How can foreign companies register a company in Thailand for digital asset business activities?

Foreign companies can establish a Thai Limited Company (with 51% Thai ownership) or apply for BOI promotion for 100% foreign ownership in eligible fintech categories.

What are the BOI benefits for fintech companies in Thailand?

BOI incentives available to eligible Fintech companies include, Tax exemptions up to 8 years, 100% foreign ownership, streamlined visa processes, no Thai-to-foreigner employee ratio requirements, and the availability of a Foreign Business Certificate.

What does สินทรัพย์ ดิจิทัล คือ mean?

It means “digital assets” in Thai.

What is a sandbox startup in Thailand’s context?

A startup that operates within regulatory sandboxes to test innovative financial or digital asset services under controlled conditions with regulatory oversight.

Which digital asset services are eligible for Thailand’s SEC sandbox?

Six categories are eligible for participation in the sandbox: digital asset exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers.

How long does Thailand’s digital asset sandbox testing period last?

Up to one year, with possibility of extension upon approval from the relevant regulatory authority.

What are the requirements to apply for Thailand’s digital asset sandbox?

Companies must demonstrate adequate capital, proper management structure, operational readiness, and risk management capabilities.

Can foreigners own 100% of a fintech company in Thailand?

Yes, through BOI promotion for eligible fintech activities.

What is the minimum capital requirement for foreign company registration in Thailand?

If the company wishes to hire a foreign employee (without a BOI promotion), the minimum capital required is 2 million THB per foreign employee. BOI promoted companies have different requirements and there is no employee or capital requirements. If no foreign employees will be working for the company, in practice 50,000 THB is the standard amount.

How does Thailand’s approach to crypto regulation compare to other countries?

Thailand takes a structured, proactive approach with clear regulatory frameworks, approved cryptocurrency lists (BTC, ETH, XRP, USDT, USDC), and supportive sandbox environments.

What fintech categories qualify for BOI promotion in Thailand?

Digital payments, P2P lending platforms, blockchain technology, insurtech, embedded software, enterprise software, and digital services.

Is a work permit required for foreigners running a digital asset company in Thailand?

If the foreigner is working in Thailand, then they are legally required to have the correct visa and work permit. BOI-promoted companies benefit from streamlined visa and work permit processes making obtaining one easier.

Please note that this article is for information purposes only and does not constitute legal advice

Thailand Digital Asset Sandbox Benefits for Foreign Companies

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