Mankun Research: Bangkok Blockchain Week Opens—Why Do Web3 Entrepreneurs Flock to Thailand?

The W2140 World AI + Web3 Expo Awaits Your Participation!

If asked where the Web3 industry’s hottest spot is in November, most industry participants, especially Chinese-speaking professionals, would likely give a common answer:Bangkok！

Recently, Bangkok is set to host a series of notable Web3 and blockchain events. Among them,specially supported by Mankun Law Firm, the W2140 World Web3 + AI Expo will be grandly held from November 12 to 14. The event is expected to attract over 200,000 attendees and showcase more than 1,000 high-quality projects from around the globe. Notably, this prestigious event is jointly hosted bythe Thai Governmentand the Asian Chamber of Commerce Thailand, demonstrating Thailand’s emphasis on and support for the crypto industry.

In addition to the W2140 Expo, more renowned crypto events are scheduled to take place in Bangkok throughout November, such asNFTCON, Thailand Summit 2024, WOW Summit Bangkok, and Ethereum Devcon 2024. These events are not only attracting Web3 entrepreneurs from around the world to Bangkok but also providing an international platform for showcasing innovation, exchanging ideas, and fostering collaboration.

In fact, this is not the first time Thailand has demonstrated its attention to Web3.

The Flourishing Development of Web3 in Thailand

In recent years, Thailand has gradually developed into an ideal destination for Web3 entrepreneurs and digital nomads in Southeast Asia. Both major Web3 industry conferences and crypto projects continue to emerge vigorously. According to incomplete statistics, there have been at least dozens of Web3 and crypto events of various sizes across Thailand in the past year, covering formats such as summits, hackathons, exhibitions, and technical seminars. Among the most notable was the 2023 Thailand Blockchain Week, known as Blockchain Genesis.

According to Foresight News, the event was organized by Cryptomind, a Thai digital asset financial services provider, with HashKey Capital as the brand sponsor. During the event, a total of 29 side events were held, including Polkadot Connect Thailand 2023 hosted by the well-known public chain Polkadot; the Welcome Bulls Exclusive Dinner Party hosted by aelf, Aptos, and others; and the Polygon Guild Meet Up hosted by another prominent public chain, Polygon.

Of course, the events over the past year extended far beyond these, including:

Shanhaiwu · Chiang Mai: A Pop-up Village held in Chiang Mai, Thailand, from September 30 to November 10, 2024, co-initiated by Wanxiang Blockchain, HashKey Group, DRK Lab, and Social Layer;
Bangkok Golden Electric Music Festival: A Web3 industry electronic music networking party hosted by Jinse Finance on July 25, 2024;
Web3 Creator Summit: An industry creator summit hosted by Wanshi Island on May 5, 2024; Fansland Web3 Music Festival: The inaugural Fansland Web3 Music Festival held from May 4 to 5, 2024;
ZKP HackerHouse Thailand Chiang Mai Station: Held from April 8 to 29, 2024, jointly organized by Scroll and Antalpha Labs, aiming to explore Zero-Knowledge Proofs (ZKP);
Global Tour of Water-Cooled Mining Farms · Thailand Station: On August 10, 2023, Bitmain joined industry clients to host an event at the Green Energy Mining (GEM) water-cooled mining farm in Bangkok;

Among these events, the Fansland Web3 Music Festival naturally drew the most attention. Reportedly, the event invited several top-tier music celebrities, including PSY and Edison Chen, attracting 30,000 fans onsite, reaching an audience of over 100,000, and achieving hundreds of millions of online impressions.

Thailand is not only an ideal stage for Web3 events but also a paradise for Web3 entrepreneurs and digital nomads. In recent years, a series of Web3 projects have emerged in Thailand. Their success has not only promoted the development of the local economy but also attracted the attention of international investors and entrepreneurs.

*Image source: ROOTDATA

For instance, Cryptomind Group, the Thai digital asset service provider mentioned above, was established in 2018. It provides digital asset investment and advisory services to Web3 users and organizes Thailand’s largest blockchain events. Its subsidiary, Cryptomind Advisory, is the first company in Thailand to hold a license for digital asset advisory services, offering users in-depth research articles, industry reports, weekly newsletters, Cointalk, and cryptocurrency-related news.

Another example is Bitkub, Thailand’s leading cryptocurrency exchange. Established in 2018, the exchange currently ranks 40th globally according to CoinGecko data. According to the Thailand Crypto Report 2023 issued by HashKey Capital, Bitkub held the largest market share, accounting for 77.04% of the total trading volume that year.

Furthermore, SCBX, a traditional Thai bank, is the second-largest crypto “player” in Thailand. Currently, SCBX has established SCB10X, one of Thailand’s most successful crypto venture capital firms, and also launched TokenX, a Web3 project incubator.

As Thailand’s Web3 industry becomes increasingly vibrant, the number of Web3 users continues to grow. According to a 2023 survey, the number of users on Thai exchanges approached 3 million, exceeding the number of stock market users by 400,000 during the same period. The expansion of the user base has attracted more Web3 entrepreneurs and digital nomads to Thailand. This naturally raises Mankun lawyers’ curiosity: Why do an increasing number of Web3 entrepreneurs favor Thailand?

Thailand’s Strong Support for Web3 Innovation

Searching online for “digital nomads Southeast Asia” invariably lists Thailand, which is hardly surprising.Low cost of living, rich cultureandbeautiful environmentare indeed highly attractive. However, for Web3 entrepreneurs, the true appeal lies more inpolicy support from the Thai government. In recent years, the Thai government has actively promoted the development of blockchain and Web3 technologies and introduced a series of favorable policies, creating an environment friendly to the crypto industry.

*The W2140 Bangkok Conference, in which Mankun Law Firm participated, received strong support from the Thai government

Below are the key favorable policies identified by Mankun lawyers:

1. Tax Exemptions

In May 2023, Thailand announced theexemption of the 7% value-added tax (VAT) payable on domestic crypto asset transactions, applicable to exchanges, brokers, and related service providers regulated by the Securities and Exchange Commission of Thailand (SEC).

Furthermore, in March 2024, the Thai Cabinet further introduced anincome tax exemption policyfor investment tokens. Under this policy, holders of investment tokens are not required to include these gains in their income tax filings after paying a 15% capital gains tax, thereby avoiding double taxation.

Also in March 2024, the Thai government announced theexemption of corporate income tax and VATfor companies issuing investment tokens. This policy applies to enterprises raising funds through investment tokens, aiming to provide more financing channels for businesses and promote the development of the digital economy.

2. Destination Thailand Visa (DTV)

In May 2024, the Thai government launched the “Destination Thailand Visa” (DTV), specifically targeting global digital nomads and remote workers. It allows holders to stay in Thailand for 180 days, extendable by another 180 days upon renewal. The visa is valid for five years, aiming to providelong-term residence and workconvenience for entrepreneurs and freelancers. Through this visa, Web3 entrepreneurs can not only enjoy Thailand’s low cost of living and rich cultural environment but also legally conduct long-term business operations and project development.

3. Approval of Bitcoin ETF

In June 2024, the Securities and Exchange Commission of Thailand (SEC) approved the first Bitcoin spot exchange-traded fund (ETF), launched by the local asset management company One Asset Management, named ONE-BTCETFOF-UI. The ETF was issued from May 31 to June 6, 2024, with a risk level of eight, primarily targeting high-net-worth individuals and institutional investors. This move marks a significant step forward in Thailand’s regulatory and market development in the field of crypto assets, reflecting the Thai government’s supportive attitude towards digital asset investments.

4. Crypto Payment Pilot

At the end of 2023, the Thai government, in collaboration with the Bank of Thailand, launched a crypto payment pilot project. This project allows specific enterprises to attempt using cryptocurrencies for payment settlements within designated areas, aiming to assess the feasibility and acceptance of crypto assets in real-world commercial environments. Although the initial goal of the project was commercial payments, it demonstrates the Thai government’s willingness to explore the potential of cryptocurrencies in daily payments and economic activities.

5. Regulatory Sandbox

On August 9, 2024, the Thai SEC officially launched the Digital Asset Regulatory Sandbox program. This program allows fintech companies and Web3 enterprises to test new technologies and services in a controlled environment, including digital asset exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers. This mechanism not only lowers market entry barriers for enterprises but also helps the government better understand and adjust regulations to adapt to rapidly developing technologies and market demands. For enterprises, this means obtaining market feedback earlier, optimizing products and services, and thereby enhancing competitiveness.

Thailand’s Strict Regulation of Web3 Development

Although these measures have made Thailand not only an ideal destination for digital nomads but also a burgeoning hub for Web3 entrepreneurs, the Thai government has not relaxed its compliance supervision. Therefore, Web3 entrepreneurs looking to expand into Thailand must pay special attention to the following two key crypto regulatory policies while enjoying these favorable policies:

1. Digital Asset Act

As early as 2018, Thailand enacted the “Digital Asset Business Decree,” the first comprehensive legal framework in Southeast Asia specifically designed for digital assets and cryptocurrencies. This law categorizes crypto assets into “cryptocurrencies” and “investment tokens,” regulated by the Bank of Thailand and the Securities and Exchange Commission of Thailand (SEC), respectively. Cryptocurrencies are defined as digital assets used for payments and as a medium of exchange, while investment tokens refer to digitized assets that grant holders certain rights, such as equity or profit sharing.

Simultaneously, the decree requires all enterprises involved in digital assets, including exchanges, brokers, dealers, and ICO issuers, to register with the SEC and obtain licenses. This aims to protect investors, enhance market transparency and security, ensure enterprises operate within a clear legal framework, and promote the long-term stability and healthy development of the crypto market. This law provides clear operational guidance for market participants, establishing Thailand’s leading position in crypto compliance within the region.

2. Licensing and Compliance Requirements

Under the “Digital Asset Business Decree,” the Securities and Exchange Commission of Thailand (SEC) implements a strict licensing system for crypto asset enterprises to ensure market security and transparency. Enterprises must apply for corresponding licenses based on their specific business types. The main license categories and requirements are as follows:

Digital Asset Exchange License. Digital asset exchanges must be registered in Thailand and meet a minimum capital requirement of 50 million baht (approximately USD 1.35 million). Exchanges must ensure the security of client assets, with over 90% of client assets stored in cold wallets to reduce the risk of hacking. Additionally, exchanges must strictly comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations to ensure transaction transparency and legality.
Digital Asset Broker License. This license applies to enterprises providing intermediary services for digital asset transactions on behalf of clients. Companies applying for this license must be registered in Thailand, with a minimum capital requirement of 25 million baht (approximately USD 675,000). Licensed brokers cannot include client orders in their own accounts but must operate independently to prevent conflicts of interest and market manipulation.
Digital Asset Dealer License. This license applies to companies participating in market transactions using their own funds, with a minimum capital requirement of 5 million baht (approximately USD 135,000). Such enterprises primarily serve professional investors and must adhere to strict compliance and review procedures to ensure trading activities comply with regulations and maintain market stability.
ICO Platform License. The Thai SEC requires ICO platforms to be registered in Thailand, with a minimum capital requirement of 5 million baht (approximately USD 135,000). The responsibilities of ICO platforms include conducting due diligence on projects, technical reviews, Anti-Money Laundering (AML) checks, and investor suitability assessments. Platforms are also responsible for fund management and oversight of information disclosure for projects, ensuring the transparency and compliance of the issuance process.

Additionally, as global regulatory principles,Anti-Money Laundering (AML)andKnow Your Customer (KYC)measures occupy an important position in Thailand’s crypto market regulation. The Securities and Exchange Commission of Thailand (SEC) requires all digital asset service providers to strictly comply with these measures to ensure market transparency and security. Enterprises must execute KYC procedures during customer registration and transaction processes to verify customer identities, preventing anonymous transactions and potential illegal activities. Simultaneously, enterprises must establish internal systems to monitor transaction behaviors and promptly report suspicious transactions.

Mankun Lawyers’ Summary

Thailand attracts Web3 entrepreneurs not only because it offers abundant market opportunities and a low cost of living but also due to the Thai government’s active policy support for Web3 development and its clear regulatory framework. Through the standardization of the “Digital Asset Business Decree,” tax incentives, regulatory sandbox programs, and other measures, Thailand provides legal safeguards and innovation space for Web3 projects, creating an open and orderly market environment. This combination of policy and market vitality makes Thailand an ideal destination for Web3 entrepreneurs and digital nomads in Southeast Asia.

With Bangkok Blockchain Week approaching in November, Mankun Law Firm, committed to promoting Web3 compliance and innovation, will participate in the W2140 World Web3 + AI Expo. We look forward to engaging in face-to-face exchanges with global Web3 entrepreneurs, industry experts, and policymakers at this event to jointly discuss the future development and challenges of Web3 in Thailand, seeking compliant pathways for Chinese-speaking Web3 entrepreneurs to innovate in Thailand. We welcome you to join us in exploring this opportunity-rich crypto market in Thailand, laying a stronger legal and commercial foundation for the future development of Web3.

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