The digital nomad’s dream in Si Lom How did Crypto take root in the ancient and mysterious Thailand?

Unleashing the Digital Nomad Dream in Si Lom Exploring the Rise of Crypto in Enigmatic Thailand

Author: angelilu, Foresight News

In April this year, I went to Chiang Mai to visit Garfield and Zig, whom I briefly met in Dali. They told me that I missed the good weather. April is the hottest and most hazy time in Thailand, it is hot and stuffy, and the sky turns gray due to the burning of straw. But actually, life in Thailand is comfortable in other months. Thailand is located in the central and southern part of the Indochinese Peninsula with a tropical monsoon climate. It has three seasons: hot, rainy, and cool. The average annual temperature is 27℃, and it is hottest in April. Fortunately, I experienced the fresh and cool Chiang Mai after the rain before leaving, and Garfield said that this is the usual state of Chiang Mai.

Of course, I went with doubts. Why are more and more digital nomads in the Web3 industry moving to Thailand to live or even settle down? Bangkok and Chiang Mai in Thailand have long dominated the top two spots on the “Nomad List”. What makes them so special?

The New Frontier for Digital Nomads

Garfield and Zig said that the decision to live in Chiang Mai was not made on a whim. It was the result of careful consideration. In October to December 2022, Garfield and Zig set off from Hong Kong and, as digital nomads, spent nearly two months visiting and researching Bangkok, Chiang Mai, Phuket, and Penang, Malaysia, before ultimately choosing Chiang Mai. They used their own travel experiences to write a guidebook called “Chiang Mai Guide” and share the lives of digital nomads on YouTube.

• Opinion If OpenAI were a DAO, could it avoid this governance farce?
• Founders of Blur launch interest-bearing Layer2 Blast Replicating the airdrop gameplay of Blur points, the test network will go live in January next year, initiating activities.
• Institutional funds pouring in $1 billion into the crypto market, how will Bitcoin halving affect subsequent investments?

With this question in mind, I embarked on my initial exploration of this city. Upon landing in Chiang Mai, although the airport is not large, it is close to the city center, making takeoff and landing very convenient. Taking a taxi from Chiang Mai Airport is also affordable. Afterwards, I went to Garfield and Zig’s big house in Hang Dong and felt the price shock from the first wave. The cost of renting a two-story small villa with a courtyard in Chiang Mai is equivalent to only renting a one-room apartment in Shanghai. Then I followed them to their favorite Japanese restaurant hidden in a residential area, which is affordable but has amazing flavors. Zig said, “We couldn’t find such a restaurant in Dali. In addition, there are authentic Western food, Spanish cuisine, Italian cuisine, Mexican cuisine, Indian cuisine, and more.”

The shock of low prices did not stop there. After a satisfying meal, I noticed a neighboring golf course and inquired about it. I was surprised to learn that for just around 20 RMB, you can enjoy a basket of golf balls. The next day at noon, when the heat was unbearable, we decided to go swimming to cool down. To our surprise, it cost only about 12 RMB to swim unlimitedly in the open-air swimming pool. Chiang Mai, from prices to lifestyle, exudes the “free” pace of life and cultural heritage of this city.

The summer of Wat Cat has brought many Web3ers to Dali, and even made them stay in Dali. Garfield and Ziggy have also spent a long time in “Dalifornia” and have interacted with many people. They say that the most significant difference between Chiang Mai and Dali is the level of internationalization and more open policies. Moreover, it is very convenient to go from Dali to Thailand, which also allows many digital nomads who have temporarily stayed in Dali to choose to fly from Kunming to Thailand.

Indeed, Thailand has an attractive visa policy for Web3 professionals, where tourist visas can be obtained for one month, or smooth entry can be made through visa on arrival. In addition, starting from September to the end of February next year, Thailand has implemented a visa-free policy for Chinese tourists for about 5 months, allowing them to stay for 30 days without a visa.

It must be emphasized again that Thailand has an extremely friendly reception for Chinese consumers, with support for WeChat Pay available everywhere, and there are many salespeople who speak simple Chinese in large shopping centers. Even the labels on products are in three languages: Thai, Chinese, and English, with Chinese appearing above English.

In short, the weather is relatively suitable, the cost of living is low, the international living environment can be enjoyed, and there are no barriers for Chinese people to migrate, which are attracting digital nomads to move in.

Recently, Thailand Blockchain Week

In the past six months, there have been many changes in Thailand’s blockchain-related policies and current situation. Last weekend, the “Thailand Blockchain Week” was held in Bangkok, once again bringing together a group of crypto nomads from all over the world to Thailand. What are their views on Thailand’s blockchain, and what changes have occurred?

My colleague Carrie spent a week in Thailand during the event. Although it was late autumn, she was still able to wear short sleeves in the sunny weather and enjoy the warm and pleasant climate. She also celebrated her birthday there, and her trip to Thailand was marked by a circle of friends filled with delicious food. After communicating with her, the topics of concern at the conference and surrounding activities included industry regulation and policies, mass adoption of Web3, development of utility applications, SocialFi, and RWA, etc. Half of the speeches and forums in the main venue were in Thai, which was very localized. The venue also attracted local KOLs, Web2 practitioners, and university students interested in the blockchain industry.

When asked about the most impressive aspect of the conference, Carrie said, “Investment management company XSpring Capital had a large booth at the entrance of the conference, where users could get a free cup of coffee after completing a Twitter task. Many people were queuing up for it.” In addition, “the cutest booth was undoubtedly Pudgy Penguins, where the staff at the booth were core members of the Pudgy Penguins Thailand community. They were very enthusiastic, and there were also many holders of Pudgy Penguins present.” The organizers of the event were also interesting, with a “bull riding” challenge on-site to see who could hold on the longest without being thrown off, attracting many participants to stop by.

Carrie had the privilege of interviewing Sanjay Popli, co-founder and CEO of Cryptomind Group Holdings, a digital asset consulting and investment company. Cryptomind Group Holdings is the organizer of the main event of Thailand Blockchain Week, and its subsidiaries include Merkle Capital, a digital asset management company licensed by the Thai SEC, and Cryptomind Advisory, a digital asset advisory service provider licensed by Thai regulators.

In the interview with Sanjay Popli, co-founder and CEO of Cryptomind Group, he explained the impact of blockchain technology on Thailand. Popli believes that blockchain technology has the greatest impact on financial transactions and asset management. For example, two major banks in Thailand, Siam Commercial Bank and Kasikornbank, have joined the blockchain industry, marking an important step for Thailand’s financial industry towards innovation, security, and efficiency. This can greatly improve customer experience and make Thailand a forward-looking participant in the global financial sector.

In addition, Popli also mentioned significant progress in the real estate sector in Thailand, where two real estate development companies have launched asset tokenization projects. Popli said, “This innovative investment method makes real estate investment more democratized and attracts more investors.” Retail companies have also integrated blockchain technology into loyalty points programs to enhance transaction transparency and security. Even in the art world, artists have started using NFT platforms to showcase and sell their works, opening up new markets and opportunities.

Popli pointed out that according to Chainalysis’ “2023 Global Cryptocurrency Adoption Index,” Thailand ranks tenth in terms of global cryptocurrency adoption, reflecting Thailand’s attention to and acceptance of blockchain technology.

When asked about the younger generation’s views on blockchain and cryptocurrencies in Thailand, Popli emphasized the great enthusiasm of young people for blockchain and cryptocurrencies. According to statistics, there are over 2.9 million registered users on Thai exchanges, with the majority aged between 18 and 25. Young people not only see the potential of blockchain technology in finance, supply chain management, healthcare, and entertainment but also view blockchain as an innovative tool and a way to access new career opportunities. Thai educational institutions are gradually incorporating blockchain and cryptocurrency research courses, which help enhance young people’s awareness and understanding.

About Thailand’s Web3 startup environment, Popli says that it is largely friendly, thanks to the clear and structured regulations set by the Securities and Exchange Commission (SEC) of Thailand. These regulations provide a clear operational framework for startups, allowing them to develop in a stable and predictable environment. Popli also points out that while such regulatory frameworks provide necessary guidance, there is a need to find a balance between regulatory requirements and innovation-friendly policies for startups engaged in continuous innovation. This balance is crucial for fostering entrepreneurial innovation and maintaining a healthy market.

So, what exchanges do Thai people use? Popli says that most Thai people primarily use regulated centralized exchanges such as Bitkub and Bitazza, as evidenced by their huge trading volume. For example, the average daily trading volume from the beginning of the year (YTD) is about 38.46 million USD, indicating strong user preference for these regulated platforms. Their reliability and compliance with Thai regulations make them the preferred choice for many individuals involved in cryptocurrency trading and investment in Thailand.

At the same time, some experienced users also use global cryptocurrency exchanges such as Binance and OKX. Additionally, some respondents mentioned using Satang as a frequently used centralized exchange, and also using decentralized exchanges (DEX) such as Uniswap and SushiSwap on a daily basis.

Furthermore, some respondents mentioned that while Web3 is developing rapidly in Thailand, there are still some limiting factors, including language barriers, lack of educational information in the Thai language, and understanding of blockchain technology knowledge. Compared to blockchain conferences in other places, the scale of the Thailand Blockchain Conference is still relatively small. However, the discussions are closely related to the local economy and societal needs, making it more relevant to the local market.

Current state of blockchain in Thailand

Regulatory changes

On November 10th of this year, Thai Prime Minister and Minister of Finance, Satat, once again manifested his pre-election promise to distribute a digital wallet with 10,000 baht to each individual. However, due to various reasons, it was not possible to “spread wealth to everyone,” so he changed it to distributing a 10,000 baht digital wallet to Thai citizens aged 16 and above with a monthly income of less than 70,000 baht or savings of less than 500,000 baht.

This crypto-friendly new prime minister previously served as the CEO of real estate developer Sansiri before entering politics, and the company has been an active participant in the country’s digital asset field. In 2021, Sansiri acquired a 15% stake in Thai digital asset service provider XSpring, which operates a joint cryptocurrency brokerage with Krungthai Bank and a licensed ICO portal. One year later, Sansiri launched the “SiriHub Token” on XSpring, which is a structure similar to REITs and provides dividends from Sansiri Campus, one of the company’s major development projects.

With the support of the new prime minister’s policies, the enthusiasm for participation in cryptocurrency in Thailand is only increasing. Overall, Thailand’s policies towards cryptocurrency regulation are relatively relaxed, while also encouraging the development of digital currency projects. Thailand is one of the first countries to have clear regulations on digital assets.

The cryptocurrency story in Thailand can be traced back to 2013, four years after the creation of Bitcoin, during the first wave of Bitcoin exchange establishment. From November 2013 to February 2014, Thailand experienced a political crisis due to issues with an amnesty bill, combined with the release of long-term risks accumulated during the process of imbalanced political and economic development. According to an analysis report on the evolution of the political crisis in Thailand at the time, overseas banks and other financial institutions adopted a strategic defense approach and conducted business cautiously in Thailand. However, according to IMF statistics, Thailand’s per capita GDP in 2013 was $5,878, triple the level at the beginning of the century, indicating that Thailand had already entered the ranks of middle-income countries. The enthusiasm of national investment and the chaos in the financial system at that time further pushed investors into the wave of cryptocurrency investment. It was during that time that Thailand’s earliest batch of cryptocurrency exchanges was established, with Bxinth founded in 2013 and Satang Pro in 2014.

By 2017, more than 100 companies in Thailand were accepting BTC as payment for goods or services, attracting a large number of individual Thai investors in the ICO wave of cryptocurrency projects. Representative projects at the time included JFIN Coin’s ICO supported by a financial technology development project. During the pre-issue period, 100 million JFIN coins raised 660 million Thai baht in the first 55 hours. Due to the success of JFIN Coin, more than a dozen Thai companies expressed plans to launch ICOs in 2018.

Starting from 2018, Thailand began to introduce regulations related to cryptocurrencies. In March 2018, the Thai Cabinet approved the “Digital Asset Management Act,” lowering the tax rate on cryptocurrency profits to 15%. In May 2018, the “Digital Asset Business Act” was passed, which classified cryptocurrencies, non-fungible tokens (NFTs), and other encrypted assets as “digital assets.” This indicated that the Thai government was adopting a relaxed stance towards cryptocurrency assets. In July 2018, the Thailand Securities and Exchange Commission (SEC) issued the “Thailand Digital Asset Exchange Guideline,” allowing the trading of seven cryptocurrencies for ICOs, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), and Stellar (XLM).

The overheating development drew regulatory attention, and the attitude of Thai regulatory authorities towards blockchain tightened around 2019. Furthermore, in March 2021, Thailand went a step further by including currency, assets, or algorithm-backed stablecoins in the category of “digital assets.” Starting from September 2021, the Thailand Anti-Money Laundering Office has required local cryptocurrency exchanges to ensure that new customers are physically present before opening an account or conducting new transactions, making Thailand one of the strictest countries in implementing KYC guidelines for cryptocurrency-related activities. All of these measures are aimed at preventing money laundering and other illegal activities.

Since April 2022, the Securities and Exchange Commission (SEC) in Thailand has implemented a new policy prohibiting companies from using cryptocurrency to pay for their services or retail goods. Then in September of the same year, Thailand further strengthened its regulations by explicitly banning cryptocurrency companies from offering pledging and lending services. These measures pose a significant challenge to Thailand’s growing cryptocurrency ecosystem.

However, with the appointment of a new prime minister, Thailand’s cryptocurrency regulatory environment may once again undergo a transformation towards a more friendly direction. Despite facing regulatory challenges, the number of participants and developers in the cryptocurrency field in Thailand continues to grow, demonstrating strong momentum in this field.

The Diverse Ecosystem of Blockchain in Thailand

Currently, there are not many local blockchain companies in Thailand, and the industry is still in its early stages of development. The following summary will outline the development of Thailand’s blockchain ecosystem from the perspectives of traditional industries, centralized exchanges, and popular projects.

Involvement of Traditional Industries

Traditional financial institutions in Thailand are actively venturing into the cryptocurrency field. In November 2021, the oldest bank in Thailand, Siam Commercial Bank (SCB), announced its plan to acquire a 51% stake in Bitkub for 17.85 billion Thai Baht (537 million US dollars), making the company valued at over 1 billion US dollars. However, this transaction was canceled on August 25, 2022. SCB stated that the reason for the cancellation was Bitkub’s lawsuit against the Securities and Exchange Commission of Thailand, accusing them of participating in insider trading.

Kasikornbank (KBank), the second-largest commercial bank in Thailand, announced its successful acquisition of a majority stake in the Thai cryptocurrency exchange Satang for $10.3 million at the end of October. Satang will be renamed Orbix. In September, K-Bank also launched a $100 million fund targeting Web3, fintech, and artificial intelligence.

In addition to SCB and K-Bank, the Thai energy giant Gulf has also partnered with Binance to establish a joint venture called Gulf Binance. This joint venture has obtained a license as a cryptocurrency asset operator in Thailand and plans to commence operations in Thailand in the fourth quarter of 2023.

Other major businesses entering the Thai market include PTT, Thailand’s state-owned petroleum and natural gas company, which has established a blockchain-based renewable energy platform, and Monaker Group, which has entered the tokenized assets field through the indirect acquisition of Longroot, Thailand’s ICO portal, to establish a tourism booking platform.

Centralized Exchanges

So far, the website of the Securities and Exchange Commission of Thailand provides detailed categories of licenses for cryptocurrency businesses, including digital asset exchanges, digital asset brokers, digital asset dealers, digital asset fund managers, digital asset advisory services, digital asset custody wallet providers, ICO portals, and others. Here are 10 digital asset exchanges that have obtained licenses.

The crypto exchange Bitkub is Thailand’s first Web3 unicorn. It was founded in 2018 and became one of the first exchanges to obtain the country’s securities and exchange commission’s digital asset license in 2019. However, in early 2021, the Thai securities and exchange commission ordered Bitkub to stop opening new accounts and demanded the company to improve the system’s latency issues. In 2022, Bitkub executives were fined 8.5 million Thai baht by the Thai SEC for insider trading, and the acquisition deal by Siam Commercial Bank was put on hold. But currently, Bitkub is still the leading centralized exchange in Thailand, allowing Thai baht deposits and withdrawals, with reports claiming it holds 95% of the local market share.

Popular Projects

Popular local projects in Thailand include OmiseGo, a Thai mobile payment company founded in 2014. In 2017, OmiseGo successfully raised about $25 million through an initial coin offering (ICO). The company issued the OMG token, based on Ethereum, marking an important milestone in the blockchain field.

Another project that remains in people’s sights is Band Protocol, a decentralized oracle launched in 2017. According to DefiLlama data, Band Protocol currently has a total locked value (TVL) of $37.71 million and supports over 20 protocols.

Atato, a Thai digital asset solution provider, offers a cryptocurrency custody application that helps businesses comply with Southeast Asian digital asset regulations, securely create, store, and manage digital assets.

Thailand has also seen high-quality projects in the metaverse and NFT boom. In the gaming sector, the Thai Game GuildFi has achieved significant success by hosting the game “Axie Infinity,” becoming a cornerstone of the play-to-earn platform’s development. GuildFi also raised approximately $100 million in funding from global investors in its second financing round, positioning itself as a strong competitor to be Thailand’s next unicorn enterprise. In the NFT space, there are also NFT marketplaces like Knowhere.art.

Community

Although Thailand’s blockchain media industry is still in its early stages, blockchain content platforms in Thai language such as SiamBlockchain and Bitcoin Addict can better promote local blockchain knowledge dissemination and international cooperation to overcome the language barrier mentioned earlier. It’s worth mentioning that my colleague Carrie visited Bitcoin Addict’s new office in Bangkok’s Rattanakosin District. The building design is not only unique but also full of “cultural characteristics.”

In addition, Thailand has many active cryptocurrency communities, serving as a gathering place for cryptocurrency and blockchain enthusiasts. For example, the shared office space “Yellow” on Nimmanhaemin Road in Chiang Mai not only functions as a coworking space but also serves as a Web3 startup incubator. Additionally, there are regular meetups and sharing sessions held by cryptocurrency co-living communities like 4seas, 706 Chiang Mai, and Muchiangmai. These events provide ample social and collaborative opportunities for industry professionals, fostering offline communication and providing a platform for finding potential partners.

Lastly, for those who aspire to join Thailand’s Web3 digital nomad community or seek identity and cultural integration in this global age, Gaffy and Zig, the leaders of 4seas Chiang Mai, offer the following advice: “Whether it’s venturing abroad, living and working remotely, or migrating, these experiences allow you to encounter the vastness of the world and different ways of life. However, it also means you must learn to be a responsible global citizen. Despite differing viewpoints and perspectives, showing respect to others and empathizing with them is the first step. Learn about local customs, culture, and laws, understand the differences, and maintain respect. That, I believe, is the most important advice.”

References

The direction and impact of Thailand’s political chaos – Global regional risk report, February 2014

Thailand’s New Pro-Crypto Prime Minister Was an Active Crypto Investor

ICO AND CRYPTOCURRENCIES: A THAI LAW PERSPECTIVE

An overview of the cryptocurrency regulations in Singapore and Thailand

2019 Asian Blockchain Industry Report

Thailand’s Oldest Bank Acquires Majority Stake in Country’s Largest Crypto Exchange

Thailand’s Cryptocurrency Regulatory Policies

We will continue to update Blocking; if you have any questions or suggestions, please contact us!