Population: 70 million

Wealth in domestic bank deposits: 503 billion USD (December 2023)

Offshore expatriated wealth: 21.7 billion USD

Main offshore banking locations: N/A

Number of individual brokerage accounts: 2.4 million (2023)

Crypto adoption (% of population): 6.7 million (9.32%)

TLDR

Thailand has relaxed regulations on foreign exchange and cross-border investments and transactions. The securities regulator facilitates foreign offerings to qualified investors while retaining protections for retail investors. Cryptocurrency regulation is evolving quickly to allow innovation under licenses. Qualified investor rules differentiate sophisticated and retail investors. 

Exchange Controls

Thailand’s exchange control regulations are administered by the Bank of Thailand (BOT) with the objectives of maintaining currency stability and facilitating cross-border economic transactions. Under the Foreign Exchange Control Act, conducting foreign currency transactions such as purchases, sales, exchanges or transfers must be done through authorized juristic persons, money changers or money transfer agents licensed by the Ministry of Finance. Commercial banks with foreign exchange licenses and authorized money transfer companies typically have such licenses.

For inflows, there are no restrictions on bringing foreign currencies or Thai baht into Thailand. However, any person receiving inward remittances equivalent to over $1 million is required to repatriate and sell those funds to an authorized bank within 360 days. The uses of those repatriated funds are regulated. For outflows, payments for trade, investment, lending and other obligations are generally permitted, with some thresholds and conditions. Institutional and retail investors can invest in foreign securities and currencies, within defined limits. Gifts or grant transfers abroad up to $50,000 per year are allowed. The BOT takes a balanced approach to regulating inflows and outflows to facilitate economic growth and currency stability.

Qualified Investors

Thailand makes a distinction between qualified investors and regular retail investors. Qualified investors include high net worth individuals with over 10 million baht in investable assets, as well as institutional investors. They can invest in assets and securities not available to regular investors, such as initial public offerings, derivatives, and unlisted securities. Qualified investors also do not require a special license to trade in these assets. The rationale is that qualified investors have the sophistication, experience and resources to understand complex investment products and the associated risks. This protects retail investors while allowing greater latitude for qualified investors.

Regulations for Securities and Investment Products

The Securities and Exchange Commission (SEC) is the main regulator for securities offerings and investment products in Thailand. Public offerings of foreign shares require approval by the SEC, with exceptions for small private placements, small aggregate offers up to 20 million baht, and offers made only to qualified institutional investors. Dual listings that allow shares to be listed on the Stock Exchange of Thailand and a foreign exchange are permitted. For foreign bonds, no special approval is needed except that Thai baht denominated bonds require Ministry of Finance approval, which is currently only granted for bonds from a selected group of countries. Approval exemptions apply for small private placements of bonds.

Foreign collective investment schemes (CIS) can be offered to accredited and institutional investors in Thailand without SEC approval, though with eligibility criteria. Additional restrictions apply if the offer is made to retail investors. The SEC also generally prohibits active marketing of foreign securities in Thailand, though responding to unsolicited requests from qualified investors is allowed. The regulatory focus is to streamline cross-border investment while retaining investor protections.

Cryptocurrency Regulations

Thailand permits cryptocurrency trading and businesses, provided they obtain licenses from the SEC. A Digital Asset Exchange License is required for crypto exchanges while a Digital Asset Brokerage License is required for crypto brokers. The SEC imposes restrictions on how crypto assets are advertised, to avoid misleading promotions. Gains from cryptocurrency trading are subject to a 15% capital gains tax for short term holdings or 5% for long term holdings, defined as over one year.

The regulatory stance of the SEC is focused on allowing crypto innovation to flourish while protecting investors and preventing illicit usage. More reforms and additional crypto regulations are expected given the dynamic nature of the crypto industry. The SEC appears receptive to emerging technologies like blockchain while ensuring they comply with investor protection norms.