Thailand Bans Foreign P2P Crypto Platforms in 2025 Crackdown

Posted by HELEN Nguyen
- 25 January 2026 0 Comments

Thailand Bans Foreign P2P Crypto Platforms in 2025 Crackdown

On June 28, 2025, Thailand shut down five major foreign peer-to-peer crypto platforms overnight. Bybit, OKX, CoinEx, 1000X, and XT.COM were all blocked from accessing Thai users. No court order. No warning beyond a one-month notice. Just a government decree and a digital wall slammed shut.

Why Thailand Did This

Thailand didn’t ban crypto. It banned foreign unlicensed platforms that were operating like wild west outposts - no KYC, no AML checks, no accountability. The Thai Securities and Exchange Commission (SEC) found these platforms were being used to move stolen money, run fake investment schemes, and launder cash from scams. In 2024 alone, Thai authorities traced over 12 billion baht ($330 million USD) in suspicious crypto flows tied to unregulated foreign exchanges.

The crackdown wasn’t random. It followed two Royal Decrees signed on April 13, 2025. One forced every foreign crypto platform targeting Thai users to get a license from the SEC. The other gave the Ministry of Digital Economy and Society (MDES) the power to block websites without a judge’s approval. That’s not common. Most countries need court orders. Thailand cut the red tape to act fast.

Who Got Blocked and Why

The five banned platforms weren’t small players. Bybit and OKX are top 10 exchanges globally. But they didn’t apply for a Thai license. They assumed they could ignore Thai law because they were based overseas. That didn’t fly.

The SEC made it clear: if you’re marketing to Thai users, accepting Thai baht, or letting Thai IDs sign up - you’re operating in Thailand. That means you need a license. No exceptions. The platforms that refused to comply were labeled as digital asset exchanges under Thai law - meaning they were breaking the same rules banks have to follow.

The ban wasn’t about the tech. It was about control. Thailand wanted to know who was trading, where the money came from, and who was getting ripped off. Foreign platforms didn’t share that data. So they got cut off.

What Happened to Users

About 1.2 million Thai crypto users held assets on the banned platforms. The SEC gave them 30 days to withdraw their funds. That sounds like time - until you realize many users had thousands of dollars locked in trading positions, staking rewards, or illiquid tokens. Some couldn’t sell without taking big losses. Others couldn’t even access withdrawal functions as the platforms froze withdrawals to avoid mass outflows.

Reddit threads and Thai Facebook groups filled with panic. “I had 15,000 USD in OKX. Now I can’t touch it,” wrote one user. Another said, “They gave us a month, but the platform started delaying withdrawals after the announcement. It felt like a trap.”

The SEC didn’t offer compensation. Their message was simple: use licensed exchanges next time. But for many, that meant learning a whole new system - and losing access to the liquidity and lower fees these global platforms offered.

Thai users hand digital wallets to an SEC official while licensed exchanges glow in the background.

Who Else Got Hit

The ban didn’t stop at exchanges. Banks, telecom companies, and even messaging apps like Line and Telegram were told to stop letting scammers use their services. If a bank account got used to fund a crypto scam and the bank didn’t flag it, the bank could be sued. If a telecom provider didn’t block a scammer’s SIM card linked to a crypto fraud ring, they could face fines.

This was a shift. Before, crypto scams were seen as “user error.” Now, the infrastructure providers are legally responsible. It’s a heavy burden, but it forced real change. Banks started rolling out new crypto transaction monitoring tools. Telecom companies began shutting down numbers linked to known scam operators within hours.

What’s Still Legal

Crypto isn’t banned in Thailand. It’s just regulated. You can still buy, sell, and trade digital assets - but only through Thai-licensed platforms. As of October 2025, there are 12 licensed exchanges operating in Thailand, including Bitkub, Zipmex, and Coinone Thailand. These platforms must follow strict rules: collect ID documents, report suspicious activity, keep user funds separate from company money, and submit monthly audits.

Even more surprising? Thailand is pushing ahead with its own blockchain projects. In May 2025, the government announced plans to issue 5 billion baht ($150 million) in digital tokens called “G Tokens” - backed by government bonds. This isn’t a cryptocurrency. It’s a digital bond, meant to modernize how Thailand borrows money.

They’re also testing a blockchain-based stock trading system for local securities firms. So while foreign P2P platforms are blocked, homegrown innovation is being encouraged.

A digital tree of government-backed crypto systems grows as illegal P2P vines are cut down.

How This Changed Business

Thai businesses that relied on cross-border crypto payments got hit hard. Before the ban, a Thai importer could pay an Indian supplier directly in USDT via Bybit. Now, they have to use a Thai licensed exchange, convert to baht, then send via traditional banking channels. That adds days to payments and fees on top of fees.

One Thai startup that sold NFTs to global buyers lost 40% of its revenue overnight. “We used OKX to receive payments. Now we’re stuck with a local exchange that charges 2.5% per withdrawal and takes three days to settle,” said the founder. “We’re losing customers who just want fast, cheap payments.”

The regulatory cost is real. Companies now need legal teams just to handle compliance. Small traders feel the squeeze. Even legitimate businesses are caught in the net.

What’s Next

Thailand’s move has sparked debate across Southeast Asia. Singapore and Malaysia are watching closely. Will they copy Thailand’s hardline approach? Or will they find a middle ground?

For now, Thailand’s message is clear: you can trade crypto here - but only on our terms. The government isn’t trying to stop innovation. It’s trying to control it. To stop the scams. To protect ordinary people. And to make sure no foreign company thinks it can operate above the law.

The experiment is still unfolding. Will the ban reduce crime? Will it push users to underground platforms? Will Thai exchanges become too slow, too expensive, and too restrictive?

One thing is certain: if you’re a foreign crypto platform and you want to reach Thai users, you don’t get to choose the rules anymore. Thailand wrote them. And they’re not changing.