Overview of Thailand's Blockchain and Encryption Ecosystem

1. Analysis of Cryptocurrency Market Activity

1. Cryptocurrency data platform access volume

In 2023, a well-known cryptocurrency data analysis platform reached an average monthly visit of 648,000 people in Thailand, accounting for 0.94% of the national population. Notably, Thailand's per capita visit rate is 0.21% higher than that of the United States.

2. Encryption asset trading scale

According to data platform statistics, from January to October 2023, the total trading volume of Thailand's leading digital asset exchanges reached 116.4 billion USD, approximately 410 billion THB. Among them, a major exchange accounted for 77.04% of the market share, while the other two exchanges accounted for 21.60% and 1.36% respectively. It is worth mentioning that one of the exchanges was acquired by a large bank in 2023 and renamed.

3. User interest in digital assets is growing.

In the global cryptocurrency adoption index, Thailand ranks tenth. This ranking takes into account users' activities in centralized exchanges, P2P trading, and DeFi protocols.

• Exchange users: The number of user accounts at Thai digital asset exchanges has exceeded 2.94 million, accounting for 4.27% of the total population, demonstrating the rapid growth of the encryption industry.

• International trading platform: From January to November 2023, Thai users visited a well-known international trading platform an average of 116,877 times per month, peaking at 303,057 times in January 2023.

• Encryption Wallet: From September 2020 to August 2023, a mainstream encryption wallet had over 797,000 downloads in Thailand, peaking at 88,539 in November 2021, possibly influenced by the GameFi and metaverse boom.

• Decentralized Exchange: During the 2021 bull market, Thai users visited DEX approximately 35,000 times per month, but the traffic declined after the bear market set in.

• NFT Market: In the 2022 NFT boom, a major NFT trading platform in Thailand had an average monthly visit of 48,000 times, peaking at 65,000 times in July, and then declining as the market cooled down.

2. Thailand Blockchain Regulatory Framework

Thailand has adopted a relatively clear regulatory strategy for cryptocurrency:

• The Securities and Exchange Commission (SEC) of Thailand has followed the practices of countries such as the United States and Japan, and has established the main regulation "Emergency Decree on Digital Asset Business."

• The regulatory scope includes cryptocurrency, tokens, ICO issuance, and related businesses.

• Established seven types of digital asset-related licenses, covering multiple areas such as exchanges, brokers, and fund management.

• Currently, cryptocurrencies are classified as commodities and are subject to a 7% transaction tax. The industry is pushing to reposition them as investment products.

3. Development of Thailand's Blockchain Ecosystem

Digital asset activities in Thailand are primarily concentrated in trading, brokerage/dealers, and tokenization, dominated by several core participants:

• Exchange: In addition to local trading platforms, a certain international trading platform has jointly established a new company with a Thai energy company, which has obtained a license but has not yet started operations.

• ICO Portal: Both banks are involved in the ICO portal business, providing a platform for digital asset issuance.

• Brokers/Dealers: Several licensed institutions provide digital asset brokerage and trading services, including subsidiaries of traditional financial institutions and energy companies.

• Consulting services: Companies have obtained licenses for digital asset consulting services, providing research reports and industry analysis.

• Venture Capital: Major banks have established dedicated venture capital departments focusing on the digital asset space.

• Web3 Projects: Local Web3 projects in Thailand are mainly focused on GameFi and the metaverse, with some projects receiving support from internationally renowned investment institutions.

Overall, Thailand's blockchain ecosystem is rapidly developing, with the participation of traditional financial institutions and large enterprises bringing new momentum and opportunities to the industry.