Thailand Bans Foreign P2P Crypto Platforms in 2025 Crackdown

On June 28, 2025, Thailand shut down five major foreign peer-to-peer (P2P) crypto platforms overnight. Bybit, OKX, CoinEx, 1000X, and XT.COM vanished from Thai internet access without warning. No court order. No grace period. Just a block. For thousands of Thai crypto users, their wallets froze. Their trading accounts disappeared. And the Thai government didn’t apologize.

Why Thailand Pulled the Plug

Thailand didn’t ban crypto. It banned foreign crypto platforms that refused to play by its rules. The Securities and Exchange Commission (SEC) made it clear: if you want to serve Thai customers, you need a license. No exceptions. No loopholes. The Digital Asset Business Act, updated in April 2025, gave the SEC the power to demand compliance-or shut you down.

The targets weren’t random. These five platforms were all operating without Thai licenses while actively marketing to Thai users. They offered low fees, high leverage, and easy sign-ups-exactly what scammers love. The SEC found evidence linking them to money laundering rings, phishing scams, and fake investment schemes. One case involved a Thai man who lost 12 million baht ($330,000 USD) after being lured by a Telegram ad promising 20% daily returns. He wasn’t alone.

The Legal Hammer

The crackdown wasn’t just about blocking websites. The Thai Cabinet passed two Royal Decrees in April 2025 that turned up the heat:

• Royal Decree on the Operation of Digital Asset Businesses (No. 2): Foreign platforms must register with the SEC if they target Thai users. No registration? Illegal.
• Royal Decree on Measures to Prevent and Suppress Technology Crimes (No. 2): The Ministry of Digital Economy and Society (MDES) can block any unlicensed platform without a court order.

Violators face up to three years in prison, fines of 300,000 baht ($8,700 USD), or both. That’s not a slap on the wrist-it’s a criminal penalty. And it’s not just the platforms that are at risk. Banks, telecom companies, and even social media apps can be held liable if they help scammers operate. If your bank lets a scammer move crypto through its system and doesn’t report it, you could be sued.

Who Got Blocked-and Why

The five banned platforms weren’t small players. Bybit and OKX are among the top 10 crypto exchanges globally by volume. They had millions of Thai users. But they never applied for a Thai license. Why? Because the requirements were too strict.

Thai licensing demands include:

• Local office with Thai staff
• Full KYC and AML compliance with Thai authorities
• Real-time transaction monitoring
• Deposit of 100 million baht ($2.7 million USD) as security
• Regular audits by Thai regulators

Most foreign exchanges saw that as a dealbreaker. They’d rather lose the Thai market than build a whole new compliance team. The SEC didn’t blink. They calculated that protecting Thai citizens was worth losing global players.

What Happened to Users?

The SEC gave users one month’s notice-May 29 to June 28-to withdraw their funds. Sounds fair, right? Not for everyone.

Many users had large positions locked in margin trades or staking contracts. Withdrawing meant selling at a loss. Others couldn’t access their accounts because the platforms froze withdrawals during the transition. Reddit threads from Bangkok and Chiang Mai filled with panic. One user posted: “I had 80 BTC on Bybit. I tried to withdraw on June 25. The system said ‘processing.’ Now it’s gone.”

The SEC didn’t offer compensation. Their stance: “If you used an unlicensed platform, you took the risk.” That left thousands in legal limbo. Some filed civil suits. Others just accepted the loss.

What’s Allowed Now?

Crypto isn’t illegal in Thailand. It’s just tightly controlled. You can still trade Bitcoin, Ethereum, and other tokens-but only through Thai-licensed exchanges. As of October 2025, only four platforms hold full licenses:

• Binance Thailand (local subsidiary)
• Krungthai Digital Assets (state bank-backed)
• Bitkub (Thai-founded, oldest exchange)
• AssetBlock (new entrant, backed by Thai fintech)

These exchanges follow strict Thai rules: no leverage above 5x, no anonymous trading, no listing of tokens without SEC approval. They also report every transaction to the government. It’s not freedom-it’s surveillance with a smile.

The Bigger Picture: Innovation Behind Bars

Here’s the twist: Thailand still wants to lead in blockchain tech. While banning foreign P2P platforms, it’s quietly building its own digital infrastructure.

In May 2025, the government announced plans to issue 5 billion baht ($150 million) in digital bonds called “G Tokens.” These aren’t crypto. They’re blockchain-based government debt, sold only to Thai investors through licensed platforms. The goal? Cut borrowing costs and modernize public finance.

The SEC is also testing a blockchain-based securities trading platform for Thai companies. If it works, it could replace the entire stock exchange system. This isn’t anti-tech. It’s pro-control. Thailand doesn’t want to be the next crypto wild west. It wants to be the quiet, orderly digital economy of Southeast Asia.

What This Means for You

If you’re a Thai citizen: stick to licensed exchanges. Don’t risk your savings on foreign platforms. The SEC won’t save you.

If you’re a foreign crypto business: if you want access to Thailand, set up a local entity. Pay the fees. Hire the staff. Play by their rules. Or stay out.

If you’re an investor outside Thailand: this is a warning. Countries are watching. Thailand showed that a small economy can take on global giants-and win. Other nations, especially in Southeast Asia, are already studying Thailand’s model. India, Indonesia, and Vietnam may follow.

Will This Work?

Six months after the ban, crypto-related fraud in Thailand dropped by 68%, according to the MDES. Scam reports on Telegram and Facebook fell sharply. The number of Thai users on foreign platforms? Down 92%.

But there’s a cost. Thai traders now pay higher fees. Liquidity is thinner. Withdrawals take longer. Some users turned to decentralized wallets and peer-to-peer trading via local meetups-still risky, but harder to track.

The government calls it a success. Critics call it overreach. The truth? Thailand chose security over convenience. And for now, that’s the law.