The Southeast Asian cryptocurrency landscape has emerged as a focal point for investors and blockchain entrepreneurs amid tightening regulations in mainland markets. As digital asset adoption accelerates across Thailand, Vietnam, and Cambodia, governments are responding with evolving regulatory frameworks while local exchanges gain momentum. This in-depth analysis explores the latest policies, taxation models, and key trading platforms shaping the region’s crypto ecosystem — essential insights for anyone navigating digital finance in Southeast Asia.
Thailand: Building a Regulated Crypto Market
Thailand has taken significant steps toward formalizing its cryptocurrency sector. In May 2018, the country introduced a comprehensive regulatory framework through the 100 Section Law, published in the Royal Gazette. This legislation classifies cryptocurrencies as digital assets under the jurisdiction of the Securities and Exchange Commission of Thailand (TSEC) — marking a pivotal shift from ambiguity to oversight.
Regulatory Framework and Taxation
Under TSEC supervision, digital asset businesses must register and comply with strict anti-money laundering (AML) and know-your-customer (KYC) standards. Initial Coin Offerings (ICOs) are permitted but only through approved platforms, requiring a minimum registered capital of 5 million THB (~$159,000). Projects must complete their application within 60 days and can only raise funds in Thai Baht or TSEC-approved cryptocurrencies that meet liquidity and compliance criteria.
Importantly, Thailand imposes a 7% value-added tax (VAT) on all cryptocurrency transactions and a 15% capital gains tax on profits from trading. These measures reflect the government’s intent to integrate digital assets into the formal economy while ensuring investor protection and financial transparency.
The Bank of Thailand has also expressed strong support for blockchain technology, particularly in areas like cross-border payments, supply chain finance, and document verification. With plans to approve at least five ICOs from a pool of 50 applicants, TSEC aims to promote viable, auditable projects that contribute to economic growth.
Leading Cryptocurrency Exchanges
Despite early-stage regulation, Thailand's crypto market is vibrant, supported by both licensed and emerging exchanges offering high liquidity and advanced trading tools.
BX.in.th
As the most popular cryptocurrency exchange in Thailand, BX.in.th stands out for its integration with TradingView’s professional charting tools. It supports over 25 cryptocurrencies, including ICO tokens, catering primarily to experienced traders. Known for low fees and deep liquidity in THB/BTC pairs, BX.in.th maintains close collaboration with regulators, reinforcing its role as a cornerstone of Thailand’s digital asset infrastructure.
Coins.co.th
Ranked second in THB/BTC liquidity, Coins.co.th is one of only two fully regulated exchanges in the country. Founded by Silicon Valley entrepreneurs Ron Hose and Runar Petursson, it goes beyond trading by enabling users to pay bills, purchase gift cards, and access cardless ATM services using Bitcoin. Its mobile app also serves unbanked populations, offering wallet management and remittance features — making it a holistic financial solution powered by blockchain.
Vietnam: Restrictive Policies Amid Growing Adoption
While Vietnam remains cautious about cryptocurrency usage, grassroots demand continues to surge.
Legal Status and Government Stance
On April 11, 2018, Prime Minister Nguyen Xuan Phuc issued Directive 10/CT-TTg, directing regulatory bodies — especially the State Bank of Vietnam (SBV) — to strengthen oversight of Bitcoin and other digital currencies. Cryptocurrencies are not recognized as legal tender, and their use in payments is strictly prohibited. However, there is no explicit law banning individual ownership of assets like Bitcoin or Ethereum.
The Ministry of Justice leads efforts to develop a legal framework for virtual assets in coordination with other agencies. Meanwhile, the State Securities Commission (SSC) prohibits listed companies, securities firms, and investment funds from engaging in crypto-related activities. The SBV further bans banks and payment providers from facilitating crypto transactions due to concerns over money laundering, terrorism financing, fraud, and tax evasion.
Despite these restrictions, the Vietnamese government is exploring blockchain technology for potential national digital currency applications — a move driven by the country’s heavy reliance on international remittances.
Active Trading Community Despite Restrictions
Even with official warnings, Vietnam's crypto community is expanding rapidly. Local startups are working with authorities to shape future regulations.
Bitcoin Vietnam
Established in late 2013, Bitcoin Vietnam is the country’s first and most trusted crypto broker. Based in Ho Chi Minh City, it enables trading in Bitcoin, Ethereum, Litecoin, Dash, and Bitcoin Cash. A key advantage is instant conversion between major cryptocurrencies and Vietnamese Dong (VND), providing fast access to fiat. Its reliability and user-friendly interface have made it a go-to platform for Vietnamese traders.
VBTC
Launched in July 2014 by investors behind Bitcoin Vietnam, VBTC was Vietnam’s first live trading platform for Bitcoin. As a member of the international Blinktrade network — which includes blockchain payment processors and market makers — VBTC ensures competitive exchange rates and strong liquidity. Although it only supports Bitcoin trading, users can withdraw cash at thousands of locations nationwide. All customers must undergo KYC/AML verification, aligning with global compliance standards.
Cambodia: Crackdown on Unlicensed Crypto Activities
Cambodia has adopted a strict stance against unauthorized digital currency operations.
Regulatory Position
On May 11, 2018, the National Bank of Cambodia (NBC), the Securities and Exchange Commission of Cambodia (SECC), and the National Police jointly declared that any dissemination, circulation, purchase, sale, or settlement of cryptocurrencies without proper licensing is illegal. Authorities specifically named high-risk schemes like KH Coin, Suncoin, K Coin, OneCoin, and Forex Coin as threats to public safety due to their association with fraud and lack of consumer safeguards.
Due to anonymity and absence of transaction history, such platforms pose serious risks for money laundering and terrorist financing. While owning Bitcoin is not outlawed, financial institutions are barred from facilitating crypto transactions — severely limiting banking access for traders.
However, Cambodia is investing heavily in digital infrastructure. The government aims to provide internet access to 100% of urban residents and 80% of rural areas by 2020 (up from 47% in 2017). With over 80% of its 16 million population unbanked, the country presents a compelling case for digital currencies as alternative financial tools.
Ongoing research into state-backed blockchain solutions suggests future openness — but only after establishing clear regulatory authority and market stability.
Key Local Exchanges
Despite restrictions, domestic platforms continue operating outside formal banking channels.
Bitcoin Cambodia
As the first local Bitcoin exchange, Bitcoin Cambodia has built a solid reputation among enthusiasts. It allows quick USD-to-Bitcoin transactions and operates independently of government oversight — founded by a group of local advocates committed to building a decentralized digital marketplace.
LockCoin
Launched on December 18, 2017, LockCoin was Cambodia’s first dedicated Bitcoin trading platform. Designed for both domestic and international users, it offers standard trading tools, charts, and multi-currency support. However, due to regulatory constraints, it does not support transactions in Cambodian Riel (KHR).
Frequently Asked Questions
Q: Is cryptocurrency legal in Thailand?
A: Yes. Thailand regulates cryptocurrencies under the TSEC. Trading and ICOs are permitted under strict licensing and compliance requirements.
Q: Can I use Bitcoin to pay for goods in Vietnam?
A: No. The State Bank of Vietnam prohibits the use of cryptocurrencies as payment methods. However, individuals may still own and trade digital assets.
Q: Are there any licensed crypto exchanges in Cambodia?
A: As of 2018, no exchanges are officially licensed. All unapproved crypto activities are considered illegal by the NBC and SECC.
Q: How are crypto profits taxed in Thailand?
A: Thailand imposes a 15% capital gains tax on profits from cryptocurrency trading and a 7% VAT on transaction fees.
Q: What prevents wider crypto adoption in Southeast Asia?
A: Regulatory uncertainty, banking restrictions, and concerns over fraud and money laundering remain primary barriers — though infrastructure development is progressing.
Q: Is blockchain technology supported by governments in the region?
A: Yes. Thailand, Vietnam, and Cambodia are all exploring blockchain for national applications such as payments, remittances, and document verification.
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