The Use of Cryptocurrency as a Medium of Payment in Thailand: Legal Problems and Obstacles

Abstract

This research article aims to examine the development, concepts, and characteristics of cryptocurrency as a digital asset, to analyze its legal status and the limitations on its use as a medium of payment in Thailand, and to propose guidelines for improving the relevant legal framework within the context of digital technology and the modern financial system. Under the current Thai legal framework, cryptocurrency is classified as a type of digital asset, however, its legal status as a medium of payment is not recognized, resulting in legal uncertainty and creating obstacles to the development of the country’s digital financial system. This study employs qualitative research in the form of doctrinal legal research by analyzing relevant laws, concepts, theories and academic materials from both domestic and foreign sources. The findings reveal that although Thailand has enacted the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), which establishes a regulatory framework for cryptocurrency in terms of investment and business operations, there are still no legal provisions directly supporting the use of cryptocurrency for the payment of goods and services. Furthermore, Notification of the Capital Market Supervisory Board No. KorThor. 5/2565 prohibits digital asset business operators from supporting or promoting the use of digital assets as a medium of payment, thereby absolutely restricting the use of cryptocurrency for the payment of goods and services, even where contracting parties voluntarily agree and mutually accept the associated risks. Accordingly, this article proposes that such notification should be revised from an absolute prohibition approach toward a limited use framework, subject to appropriate regulatory supervision and user protection measures. The use of cryptocurrency should be permitted only where the parties voluntarily agree, transactions are conducted through regulated service providers, and implementation begins under a legal sandbox framework in order to assess potential impacts prior to long-term policy reform.