BANK OF THAILAND ALLOWS BANKS TO OPEN SUBSIDIARIES FOR CRYPTO DEALINGS

Last updated: June 20, 2025, 00:43 | Written by: Anthony Pompliano

Thailand's financial landscape is undergoing a significant transformation.In a groundbreaking move, the Bank of Thailand (BoT) has recently announced that it will now allow local banks to establish subsidiaries specifically for dealing with cryptocurrencies.This decision marks a substantial shift in the country's approach to digital assets and signals a growing acceptance of the role of crypto within the traditional financial system.It's a fascinating pivot considering previous directives that seemed to discourage direct involvement in the crypto space.What does this change mean for the future of finance in Thailand?How will this affect consumers and investors?And what are the potential implications for the broader crypto market? The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3. According to a regulatoryThis article delves into the details of the BoT's announcement, explores the reasons behind this policy shift, and analyzes the potential benefits and challenges that lie ahead.

Imagine a future where your local bank can seamlessly integrate cryptocurrency transactions into your everyday banking experience. Thailand's Banks Can Now Open Subsidiaries to Invest in Cryptocurrencies CryptoGlobe Bank of Thailand Allows Banks to Open Subsidiaries for Crypto Dealings Cointelegraph Banks Now Allowed to Open Subsidiaries for Crypto DealingsThis is precisely what the Bank of Thailand is aiming to achieve by empowering banks to create specialized subsidiaries.This move opens up a wide range of possibilities, from issuing digital tokens to providing crypto brokerage services, and venturing into other crypto-related businesses. The Bank of Thailand (BOT) has passed a new circular that is allowing the banks and financial institutions to invest, issue, and sell cryptocurrencies through subsidiaries while the previous directive by the central bank to not deal in cryptos is still in effect.Let's explore what that means for you.

The Bank of Thailand's New Crypto Policy: A Detailed Look

The core of this regulatory change lies in the permission granted to Thai banks to establish subsidiaries dedicated to cryptocurrency-related activities.According to a regulatory announcement published by the BoT on August 1, 2025, these subsidiaries are now authorized to engage in a variety of crypto-related businesses. Bank of Thailand Allows Banks to Open Subsidiaries for Crypto Dealings via @cointelegraph globexmarketsThis marks a distinct departure from previous directives that, while not explicitly banning cryptocurrencies, discouraged banks from direct involvement.

The new policy permits these subsidiaries to:

Issue digital tokens: This could include security tokens, utility tokens, and other forms of digital assets.
Provide crypto brokerage services: Acting as intermediaries for buying and selling cryptocurrencies on behalf of clients.
Run crypto-related businesses: Engaging in various ventures within the crypto ecosystem, such as custody services, decentralized finance (DeFi) applications, and more.
Invest in cryptocurrencies: Allocating a portion of their capital to digital assets.

This comprehensive framework effectively creates a regulated environment for banks to explore and participate in the burgeoning crypto market. Bank of Asian country allows Banks to Open Subsidiaries for Crypto Dealings The Bank of Thailand (BoT) has recently allowed native banks to line up subsidiaries for coping with cryptocurrencies, native Thai supply Blognone reportable August three.It's a bold step towards integrating digital assets into the mainstream financial system, potentially unlocking significant economic opportunities for Thailand.

Why the Change of Heart?Understanding the BoT's Rationale

The Bank of Thailand's decision to ease restrictions on crypto dealings may seem surprising, especially given the central bank's traditionally cautious approach to digital assets. Bank of Thailand Allows Banks to Open Subsidiaries for Crypto Dealings Published at: Aug. 4, 2025 The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3.However, several factors likely contributed to this policy shift:

Growing Global Adoption of Crypto: The increasing acceptance and integration of cryptocurrencies worldwide is undeniable.Many countries are actively exploring and regulating digital assets, and Thailand risks being left behind if it maintains a restrictive stance.
Potential Economic Benefits: The crypto industry offers substantial economic opportunities, including attracting foreign investment, fostering innovation, and creating new jobs. Bank of Thailand Allows Banks to Open Subsidiaries for Crypto Dealings https: Bank of Thailand Allows Banks to Open Subsidiaries for Crypto DealingsBy allowing banks to participate, Thailand can tap into these benefits and boost its economy.
Investor Demand: There's a growing demand for crypto-related services among Thai investors.By allowing banks to offer these services through regulated subsidiaries, the BoT can better protect investors and ensure a more secure environment.
Financial Innovation: Crypto and blockchain technology are driving significant innovation in the financial sector.By allowing banks to participate, the BoT can foster innovation and ensure that Thailand remains competitive in the global financial landscape.
Risk Mitigation: Ironically, allowing regulated institutions to participate in the cryptocurrency market, while seemingly adding risk, actually increases the chance of mitigating risks in the unregulated areas of the ecosystem. According to a regulatory announcement published by the BoT on August 1, Thai banks can now issue digital tokens, provide crypto brokerage services, run crypto-related businesses, andIt brings crypto under formal oversight.

Essentially, the BoT appears to be adopting a more pragmatic approach, recognizing the potential benefits of crypto while also seeking to manage the associated risks through regulation and oversight. Recently, the Bank of Thailand (BoT) gave local banks the permission to set up subsidiaries to be used for cryptocurrency dealings.This strategic shift aims to balance innovation with investor protection and financial stability.

Implications for Thai Banks and the Crypto Market

The BoT's new policy has profound implications for both Thai banks and the broader cryptocurrency market.

For Thai Banks:

New Revenue Streams: Banks can tap into new revenue streams by offering crypto-related services, such as brokerage, custody, and token issuance.
Expanded Customer Base: The policy allows banks to attract a new segment of customers who are interested in investing in cryptocurrencies.
Increased Competitiveness: By offering crypto services, banks can remain competitive in a rapidly evolving financial landscape.
Potential Challenges: Banks will face challenges in navigating the complex regulatory landscape, managing the risks associated with crypto assets, and developing the necessary expertise.

For the Crypto Market:

Increased Liquidity: Banks' participation can inject significant liquidity into the crypto market, making it easier for investors to buy and sell digital assets.
Greater Institutional Adoption: The involvement of established financial institutions lends credibility to the crypto market and encourages further institutional adoption.
Enhanced Regulation: The BoT's regulatory framework provides greater clarity and security for investors, which can boost confidence in the market.
Potential for Innovation: Banks' participation can spur innovation in the crypto space, leading to the development of new products and services.

Overall, the BoT's policy is expected to have a positive impact on both Thai banks and the cryptocurrency market, fostering growth, innovation, and greater integration of digital assets into the mainstream financial system.

Navigating the New Regulatory Landscape: Key Considerations for Banks

While the BoT's policy opens up exciting opportunities for Thai banks, it's crucial for them to approach the crypto market with caution and diligence. Bank of Thailand Allows Banks to Open Subsidiaries for Crypto Dealings. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, localHere are some key considerations for banks looking to establish crypto subsidiaries:

Compliance and Regulatory Requirements:

Banks must carefully adhere to all regulatory requirements set forth by the BoT.This includes implementing robust anti-money laundering (AML) and know-your-customer (KYC) procedures, as well as complying with reporting obligations. Bank of Thailand Allows Banks to Open Subsidiaries for Crypto Dealings The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, localThey should also closely monitor any changes to the regulatory landscape and adapt their operations accordingly.This will likely require hiring specialized compliance officers with expertise in digital asset regulations.

Risk Management:

Crypto assets are inherently volatile and carry significant risks. The Bank of Thailand has permitted banks to set up branches that may issue tokens, invest in cryptocurrencies, and run crypto-related businesses. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.Banks must implement robust risk management frameworks to mitigate these risks, including setting appropriate risk limits, conducting thorough due diligence on crypto assets, and employing sophisticated risk monitoring tools. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies. Thai banks can now issue digital tokens, provide crypto brokerage services, runThis also means educating customers about the risks involved in investing in cryptocurrencies.

Technology and Infrastructure:

Dealing with crypto assets requires specialized technology and infrastructure.Banks must invest in secure and reliable platforms for storing, trading, and managing digital assets.This includes implementing robust cybersecurity measures to protect against hacking and theft.

Talent Acquisition:

The crypto industry is rapidly evolving, and banks need to hire professionals with the necessary expertise to navigate this complex landscape.This includes blockchain developers, crypto traders, compliance officers, and risk management specialists.Providing ongoing training to existing staff is also crucial.

Customer Education:

Many customers are still unfamiliar with cryptocurrencies and the risks involved. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3. According to a regulatory announcement published by the BoT on August 1, Thai banks can now issue digital tokens, provide crypto brokerage services, run crypto-related businessesBanks must educate their customers about digital assets, providing clear and concise information about the potential benefits and risks.This can be done through workshops, online resources, and personalized consultations.

Examples of Potential Crypto Subsidiary Services

To illustrate the potential of this new policy, let's consider some specific examples of services that Thai bank subsidiaries could offer:

Digital Token Issuance: Assisting companies in issuing security tokens to raise capital, offering investors access to a wider range of investment opportunities.
Crypto Brokerage Platform: Providing a user-friendly platform for buying, selling, and trading various cryptocurrencies.
Crypto Custody Services: Offering secure storage solutions for digital assets, safeguarding investors' holdings against theft or loss.
DeFi Investment Products: Creating innovative investment products that leverage decentralized finance protocols, providing investors with access to higher yields and greater flexibility.
NFT Marketplace: Developing a platform for buying, selling, and trading non-fungible tokens (NFTs), catering to the growing interest in digital collectibles and art.

These are just a few examples of the many possibilities that the BoT's policy unlocks. The Bank of Thailand (BoT) is planning new rules on investments in digital assets by subsidiaries of commercial banks, including allowing them to invest up to 3% of their capital in suchAs the crypto industry continues to evolve, Thai banks will have the opportunity to develop even more innovative and valuable services for their customers.

The 3% Capital Investment Limit: What Does It Mean?

The Bank of Thailand is planning further rules on investments in digital assets by subsidiaries of commercial banks. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3.According to a regulatory announcement published by the BoT on August 1, Thai banks can now issue digital tokens, provide crypto brokerage services, run crypto-related businesses, andWhile the new ruling allows subsidiaries to deal in crypto, they are limited to investing a maximum of **3% of their capital** in such assets. Bank of Thailand Allows Banks to Open Subsidiaries for Crypto DealingsWhile this might seem like a small percentage, it’s important to consider a few key points:

Prudent Risk Management: The 3% limit is likely intended as a risk management measure.It prevents banks from overexposing themselves to the highly volatile cryptocurrency market, protecting the stability of the overall financial system.
Testing the Waters: This limit allows banks to gradually enter the crypto market and gain experience without taking excessive risks.It provides an opportunity to learn, adapt, and refine their strategies before potentially increasing their exposure in the future.
Significant Capital Injection: Even a 3% investment limit can translate to a substantial amount of capital flowing into the crypto market, depending on the size and capital reserves of the bank. The Bank of Thailand has permitted banks to set up branches that may issue tokens, invest in cryptocurrencies, and run crypto-related businesses. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3. According to a regulatory announcement published by the MoreThis injection of funds can boost liquidity and drive innovation within the ecosystem.
Potential for Future Expansion: The 3% limit is not necessarily set in stone.If the BoT is satisfied with the performance of banks' crypto subsidiaries and the overall stability of the market, it may consider increasing the limit in the future.

Therefore, the 3% capital investment limit should be viewed as a starting point—a cautious but significant step towards integrating crypto into the Thai financial system. The Bank of Thailand has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3.[BREAK] According to a regulatory announcement published by the BoT on August 1, Thai banks can now issue digital tokens, provide crypto brokerage services, run crypto-related businesses, and invest in cryptocurrencies through subsidiariesIt allows banks to participate in the market while managing risk, paving the way for potential future growth and expansion.

Potential Challenges and Risks

While the Bank of Thailand's new policy offers numerous benefits, it's important to acknowledge the potential challenges and risks that banks and investors may face:

Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving globally.Banks need to stay abreast of any changes and adapt their operations accordingly.
Market Volatility: Crypto assets are highly volatile, and their prices can fluctuate dramatically. Well as thailand will quickly pounce on anything to make a dollar and regulate it for fax reasons they seem to have let the banks to Open Subsidiaries for Crypto Dealings. which means they will definately be takin a cut from coins One min they banned these dealing here in thailand the next theInvestors need to be aware of the risks involved and manage their investments accordingly.
Cybersecurity Risks: Crypto exchanges and wallets are vulnerable to hacking and theft. Continuing its decisive development spree for the optimal growth of the cryptocurrency sector, the Bank of Thailand passed a resolution to allow local banks to set-up cryptocurrency-focused subsidiaries for dealing with related businesses.Banks need to implement robust security measures to protect their customers' assets.
Fraud and Scams: The crypto market is susceptible to fraud and scams. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported Facebook Instagram Mail Pinterest Reddit RSS Telegram Twitter YoutubeInvestors need to be cautious and do their research before investing in any digital asset.
Reputational Risks: Banks may face reputational risks if they are associated with fraudulent or unethical crypto projects. The Bank of Thailand (BoT) has recently allowed local banks to set up subsidiaries for dealing with cryptocurrencies, local Thai source Blognone reported August 3.They need to conduct thorough due diligence before partnering with any crypto company.

Addressing these challenges will require a collaborative effort from regulators, banks, and investors.By working together, they can create a safer and more sustainable crypto ecosystem in Thailand.

The Future of Crypto in Thailand: A Glimpse into Tomorrow

The Bank of Thailand's decision to allow banks to open subsidiaries for crypto dealings marks a pivotal moment for the country's financial sector.It signals a growing recognition of the transformative potential of digital assets and a willingness to embrace innovation while managing risk.Looking ahead, several exciting developments could shape the future of crypto in Thailand:

Increased Institutional Adoption: As banks become more comfortable with crypto, we can expect to see greater institutional adoption of digital assets.This could lead to increased liquidity, stability, and maturity of the market.
Development of New Crypto Products and Services: Banks are likely to develop innovative crypto products and services that cater to the needs of Thai investors.This could include DeFi investment products, crypto-backed loans, and NFT marketplaces.
Integration of Crypto into Traditional Financial Systems: Over time, we may see greater integration of crypto into traditional financial systems, such as payments, lending, and investment management.
Greater Regulatory Clarity: As the crypto industry matures, we can expect to see greater regulatory clarity and standardization.This will help to create a more stable and predictable environment for businesses and investors.
Increased Adoption of Blockchain Technology: The adoption of blockchain technology could extend beyond cryptocurrencies, impacting various industries, such as supply chain management, healthcare, and voting systems.

Thailand has the potential to become a leading hub for crypto innovation in Southeast Asia.By embracing digital assets and fostering a supportive regulatory environment, the country can unlock significant economic opportunities and improve the lives of its citizens.

Frequently Asked Questions (FAQs)

Q: Is cryptocurrency now legal in Thailand?

A: Yes, and no.The situation is nuanced. The Bank of Thailand (BoT) has recently allowed native banks to line up subsidiaries for coping with cryptocurrencies, native Thai supply Blognone reportable August three. According to a regulative announcement printed by the larva on quarter day, Thai banks will currently issue digital tokens, give crypto brokerage services, run crypto-relatedCryptocurrencies themselves aren't outright banned.This new policy allows *regulated* institutions, like bank subsidiaries, to deal in them.The Bank of Thailand's previous stance was more of a discouragement of direct bank involvement.This move signals a more formal acceptance and regulation rather than a blanket legalization.It is still imperative to check the rules around cryptocurrency and trading.

Q: Can I now buy Bitcoin directly from my Thai bank?

A: Potentially, yes, but not directly from your main account, most likely.The BoT is allowing banks to create *subsidiaries* that can offer crypto services.So, you would likely interact with the subsidiary.This subsidiary will likely have its own platform and KYC (Know Your Customer) verification, and you would use that platform to buy and sell.The key benefit is that this happens under the purview of Thailand’s banking regulations, leading to better security and oversight.

Q: Is my crypto investment in Thailand insured now?

A: This is still unclear and will likely depend on the specific terms and conditions offered by each bank subsidiary.The new policy doesn't automatically guarantee deposit insurance for crypto assets.You'll need to carefully review the terms offered by each bank and understand the level of protection provided.It's crucial to ask specific questions about insurance and security measures when choosing a crypto brokerage service.

Q: What are the benefits of dealing with a bank subsidiary instead of a crypto exchange?

A: Several potential benefits exist, including:

Increased Security: Banks are subject to strict security regulations and oversight, which can provide greater protection against hacking and theft compared to some unregulated crypto exchanges.
Regulatory Compliance: Bank subsidiaries are required to comply with AML and KYC regulations, which can help to prevent fraud and money laundering.
Familiarity and Trust: Many people are more comfortable dealing with established banks than with relatively new crypto exchanges.

Q: What are the risks of dealing with a bank subsidiary?

A: Like any investment, there are risks.Cryptocurrency itself is volatile.Other risks include:

Limited Investment Options: The range of cryptocurrencies offered by bank subsidiaries may be limited compared to some crypto exchanges.
Higher Fees: Bank subsidiaries may charge higher fees than some crypto exchanges.
Potential for Conflicts of Interest: Banks may have conflicts of interest if they are also involved in other crypto-related businesses.

Conclusion: A New Era for Finance in Thailand

The Bank of Thailand's decision to allow banks to open subsidiaries for crypto dealings represents a significant milestone in the evolution of the country's financial landscape.This policy shift opens up new opportunities for Thai banks, investors, and the broader crypto market, fostering innovation, growth, and greater integration of digital assets into the mainstream financial system.

While challenges and risks remain, the BoT's proactive approach to regulation and oversight provides a solid foundation for building a sustainable and secure crypto ecosystem in Thailand.By embracing digital assets and fostering a supportive environment, Thailand can position itself as a leading hub for crypto innovation in Southeast Asia.

The key takeaways from this announcement are:

The Bank of Thailand is now allowing local banks to establish subsidiaries specifically for dealing with cryptocurrencies.
These subsidiaries can engage in a variety of crypto-related businesses, including issuing digital tokens, providing brokerage services, and investing in digital assets.
The move is driven by factors such as growing global adoption of crypto, potential economic benefits, and investor demand.
Banks are limited to investing a maximum of 3% of their capital in digital assets.
The policy is expected to have a positive impact on both Thai banks and the cryptocurrency market, fostering growth, innovation, and greater integration of digital assets into the mainstream financial system.

Ultimately, this marks a pivotal moment for Thailand's financial future.This move allows the country to engage in a new era for finance.As with any new technology, it’s imperative to proceed with caution, education, and a robust understanding of the risks and rewards.