Thailand Bans Foreign P2P Crypto Platforms in 2025 Regulatory Crackdown
On June 28, 2025, five major foreign crypto platforms vanished from Thailand’s internet. Bybit, OKX, CoinEx, 1000X, and XT.COM were suddenly blocked - no warning, no grace period beyond a single month. This wasn’t a technical glitch. It was a government order. Thailand had drawn a line: if you’re a foreign peer-to-peer crypto platform and you don’t have a Thai license, you’re not allowed to serve Thai users. Period.
Why Thailand Pulled the Plug
Thailand didn’t wake up one day and decide to shut down crypto. The move was the result of a growing wave of scams, money laundering, and unregulated trading that hurt ordinary people. The Securities and Exchange Commission (SEC) of Thailand saw it clearly: foreign platforms were operating in the shadows, taking money from Thai investors with no accountability. No KYC checks. No reporting. No recourse if things went wrong. The government’s response was fast and sharp. Two Royal Decrees passed in April 2025 gave regulators real teeth. The first, the Royal Decree on the Operation of Digital Asset Businesses (No. 2), made it illegal for any foreign crypto platform to target Thai users unless licensed by the SEC. The second, the Royal Decree on Measures to Prevent and Suppress Technology Crimes (No. 2), gave the Ministry of Digital Economy and Society (MDES) the power to block websites instantly - no court order needed. This wasn’t just about control. It was about protection. In 2024 alone, Thai authorities reported over 12,000 crypto-related fraud cases, with losses exceeding 2 billion baht ($57 million USD). Many of those cases traced back to unlicensed P2P platforms that let users trade directly with each other, hiding behind anonymity and offshore servers.Who Got Banned and Why
The five platforms blocked - Bybit, OKX, CoinEx, 1000X, and XT.COM - weren’t random picks. They were among the most popular among Thai traders. All of them had millions of users globally, but only a few had bothered to apply for a Thai license. The SEC had been clear since 2023: if you want to operate in Thailand, you must register, submit your KYC systems, prove your financial stability, and agree to regular audits. These five didn’t. So in May 2025, the SEC gave users one month to withdraw their funds. That deadline was strict. On June 28, the MDES activated the blocks. Thai ISPs stopped routing traffic to those sites. Mobile apps stopped working. Even VPNs couldn’t reliably bypass the blocks - the government had pressured telecom providers to detect and throttle suspicious traffic patterns. The SEC didn’t just target exchanges. They also went after the infrastructure that supported them. Banks were told to freeze accounts linked to unlicensed platforms. Messaging apps like Line and Telegram were required to monitor and report suspicious crypto-related group chats. If a bank ignored a scammer using its system to move crypto funds, it could be fined or even held liable for losses.
What’s Still Legal in Thailand
Let’s be clear: crypto isn’t banned in Thailand. It’s regulated. You can still buy, sell, and trade digital assets - but only through platforms licensed by the SEC. There are currently 17 licensed Thai crypto exchanges, including Bitkub, Zipmex, and RSVB. These platforms must follow strict rules: they must store customer funds in segregated accounts, report all transactions to regulators, and implement anti-money laundering checks. The government isn’t trying to kill crypto. It’s trying to bring it into the light. In May 2025, Thailand announced plans to issue up to 5 billion baht ($150 million) in government-backed digital tokens called G Tokens. These aren’t cryptocurrencies. They’re blockchain-based digital bonds, meant to make public debt issuance faster and cheaper. The same technology that powers crypto is being used to modernize Thailand’s financial system - just under strict control. Thailand is also developing a national blockchain platform for securities trading. Banks and investment firms will soon be able to issue and trade stocks, bonds, and funds on a government-supervised blockchain. This isn’t a rejection of innovation. It’s a redefinition of it.The Human Cost
For many Thai traders, the ban felt like a betrayal. People had invested life savings into Bybit or OKX. Some had automated trading bots running. Others were day traders who relied on global liquidity. When the platforms went dark, many couldn’t withdraw their assets in time. The one-month notice was too short. Reddit threads filled with panic. Twitter exploded with #ThailandCryptoBan. One user, a 34-year-old teacher from Chiang Mai, told a local news outlet she had 800,000 baht ($23,000 USD) in ETH on OKX. She tried to withdraw on June 20 - the platform’s withdrawal limits were suddenly capped. By June 27, the site was unreachable. She lost everything. No one was held responsible. No compensation came. The SEC says it warned people repeatedly. But warnings don’t help when you’re locked out of your own money. The government’s priority was systemic safety - not individual convenience. And in a country where financial literacy is uneven, that trade-off was inevitable.
Impact on Business and Cross-Border Payments
The ban didn’t just affect traders. It hit small businesses too. Thai importers who used crypto to pay suppliers in India or Vietnam suddenly couldn’t send payments directly. Before the ban, they’d use P2P platforms to convert baht to USDT, then send it to a supplier’s wallet. Now, they had to go through licensed Thai exchanges, convert to fiat, wire it through banks - a process that took 3-5 days and cost 5-8% in fees. Companies that relied on crypto for payroll or vendor payments had to rebuild their entire financial workflows. Some moved operations to Singapore or Malaysia. Others stopped exporting altogether. Experts estimate the ban cost Thai SMEs at least 1.2 billion baht ($34 million USD) in lost efficiency and transaction fees in the first six months. It also created a black market. Some traders now use peer-to-peer cash deals in person - buying crypto with Thai baht in parking lots or coffee shops. Others use offshore wallets through friends abroad. These workarounds are risky, unregulated, and harder to trace. The government knows this. But they’re betting that the cost of chaos is higher than the cost of control.What Comes Next
Thailand’s model is being watched closely across Southeast Asia. Indonesia, Vietnam, and the Philippines are all considering similar moves. If Thailand’s crackdown reduces fraud and stabilizes the market, others will follow. If it drives crypto underground or hurts innovation, it could become a cautionary tale. For now, the message is clear: if you want to trade crypto in Thailand, you play by Thai rules. No exceptions. No loopholes. No foreign platforms pretending they’re above the law. The government isn’t anti-crypto. It’s anti-chaos. And in a region where digital finance has grown faster than regulation, that’s not a bad place to start.Are foreign crypto platforms completely banned in Thailand?
Yes. Any foreign peer-to-peer (P2P) cryptocurrency platform that does not hold a license from Thailand’s Securities and Exchange Commission (SEC) is banned from operating in the country. This includes major platforms like Bybit, OKX, and CoinEx, which were blocked in June 2025 for failing to comply with local licensing requirements. Only SEC-licensed exchanges can legally serve Thai users.
Can I still trade cryptocurrency in Thailand?
Yes, but only through exchanges licensed by Thailand’s SEC. There are currently 17 approved local platforms, such as Bitkub and Zipmex, that follow strict KYC, AML, and reporting rules. Trading crypto itself is legal - it’s just restricted to regulated domestic platforms. You cannot use unlicensed foreign apps or websites.
What happens if I use a banned crypto platform after the ban?
As a user, you won’t be arrested or fined. The penalties apply to operators of unlicensed platforms - not individual traders. However, your transactions may be blocked, your funds could be frozen, and you risk losing access to your assets if the platform shuts down. There’s also no legal recourse if you’re scammed on an unlicensed site.
Why did Thailand choose to block platforms without court orders?
Thailand’s new law gives the Ministry of Digital Economy and Society (MDES) direct authority to block unlicensed digital platforms without needing court approval. This was done to act faster against scams and fraud. Previously, legal delays allowed bad actors to move funds and disappear. The government argues this speed saves money and protects citizens - though some legal experts warn it reduces transparency and due process.
Is cryptocurrency legal tender in Thailand?
No. Cryptocurrency is not legal tender in Thailand. It’s classified as a digital asset under Thai law, meaning it can be traded and held, but not used to pay for goods or services like the Thai baht. The government treats it as an investment product, not money.
What’s the difference between licensed and unlicensed crypto platforms in Thailand?
Licensed platforms must follow strict rules: they must verify user identities (KYC), report all transactions to regulators, store customer funds separately, and submit to audits. Unlicensed platforms operate outside these rules - often with no accountability, no customer protection, and no way to recover funds if they disappear. Licensed platforms are safe. Unlicensed ones are risky - and now illegal.
Can Thai businesses still use crypto for international payments?
Not directly. Thai businesses can no longer send crypto payments to foreign suppliers using unlicensed platforms. To make international crypto payments, they must first convert funds to fiat through a licensed Thai exchange, then send the money via traditional banking channels. This adds cost and delay, but it’s now the only legal option.
Did Thailand ban all crypto innovation?
No. Thailand is actively promoting domestic blockchain innovation. The government is launching G Tokens - digital bonds backed by government debt - and building a blockchain-based securities trading platform for banks. The ban targets foreign, unregulated platforms, not homegrown tech. The goal is to control risk while fostering responsible innovation.
How did users react to the ban?
Reactions were mixed. Many traders supported the move, saying it reduced scams and brought clarity. Others were furious, especially those who lost access to funds on banned platforms like Bybit and OKX. The one-month notice was widely seen as too short. Social media was flooded with complaints about frozen assets and lack of communication. The government stood by its decision, prioritizing systemic safety over individual convenience.
Will other countries copy Thailand’s approach?
Yes. Countries like Indonesia, Vietnam, and the Philippines are already studying Thailand’s model. If the ban leads to fewer crypto scams and more investor confidence, others will likely follow. The key question is whether strict control stifles innovation or creates a safer, more stable market. Thailand is betting on the latter.