Buy a property with Cryptocurrencies in Thailand

Thailand is rapidly embracing cryptocurrency as a viable means of payment across various sectors, including real estate. Leading Thai property developers, such as Sisaran and AssetWise, have begun accepting major cryptocurrencies like Bitcoin, Ethereum, and stablecoins for property acquisition. Although there are still regulatory hurdles for foreign buyers, cryptocurrency in Thailand's real estate market represents a significant step towards integrating new financial technologies and new sales opportunities among the ever growing crypto community. Yet, you can’t just swap digital coins for a property legally, in practice, digital currencies are a transfer method you can legally use to invest in real estate in Thailand.

A small crypto community is already very active in Koh Phangan and the island is becoming a paradise for crypto adepts, the opportunities to use digital assets over there are booming: see Koh Phangan new launch

Let’s explore the different processes when purchasing a property in Thailand with cryptocurrencies : risks, benefits, crypto-friendly developers and top properties to buy in crypto!

Thailand, the Standard for Cryptocurrency Regulation in Asia

Thailand has been at the forefront of regulating cryptocurrency in Southeast Asia. The Thai government, through its Securities and Exchange Commission (SEC), has established a comprehensive framework to oversee the use, trading, and issuance of digital assets within the country.

Regulation of Digital Assets:

In Thailand, cryptocurrencies and other digital assets are regulated under the Digital Asset Business Decree, which was enacted in 2018. This law provides the legal framework for the issuance and trading of digital assets, including cryptocurrencies.

The SEC (Securities and Exchange Commission) is the main regulatory body overseeing digital asset businesses, ensuring that all entities engaged in the issuance and trading of cryptocurrencies comply with the established legal requirements. This includes licensing requirements for digital asset exchanges, brokers, and dealers.

Taxation of Cryptocurrency:

The Revenue Department of Thailand has issued guidelines on the taxation of cryptocurrency transactions. Profits made from the sale of digital assets are subject to a capital gains tax, and businesses dealing with cryptocurrencies are required to include their crypto holdings as part of their taxable income.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Requirements:

To prevent money laundering and other illicit activities, Thailand has adhered to stringent AML and KYC regulations for digital asset businesses. These regulations require all digital asset exchanges and service providers to verify the identity of their customers and report any suspicious transactions to the relevant authorities. Compliance with these regulations is mandatory for all businesses operating within Thailand’s digital asset space, and failure to adhere to these rules can result in severe penalties, including fines and revocation of licenses.

Buy a Property with Cryptocurrency in Thailand 101

In practice, when you buy a property with crypto, there are different pathways whether you are buying a new property from the developer directly, or whether it is a secondary property and the seller is an individual, and upon the legal ownership structure of the property.

While it is now possible to buy real estate in Thailand with cryptocurrencies, there are legal nuances foreign investors need to be aware of in regards to ownership structure.

Buy a condo with crypto in freehold ownership:

Foreigners cannot own land outright in Thailand, however, they can own condominium units outright, through freehold ownership terms with title deeds under their foreign name. (Foreign Quota capped at 49% max total condo surface). To register a condominium unit into foreign freehold terms, a Foreign Exchange Transaction Form (FET Form), issued by a Thai bank, proving that funds were transferred from overseas in a foreign currency is required at the Land department. Thai crypto exchanges cannot provide this form directly, foreign buyers using cryptocurrencies must therefore engage with a Thai third-party intermediary to convert their crypto locally into Thai Baht, allowing the issuance of a FET form ultimately. This 3rd party intermediary is often an official or authorized broker from the receiving bank. This involves going through a KYC process, and multiplies the intermediaries.

Buy estate with crypto through a Thai Company:

Purchasing land or estate in Thailand via a Thai Limited Company with cryptocurrency is possible but involves significant administrative and maintenance fees for the company limited, as well as corporate structuring, and conversion fees of the cryptocurrencies into Thai Baht. In this case scenario, the FET form is not required, hence funds are not required to come from overseas in a foreign currency, hence the cryptocurrencies can be converted into THB through a local thai crypto exchange and then wired directly to the company’s bank account. This involves going through a KYC process. 

Additionally, the funds used for the purchase must appear on the company’s balance sheet, and crypto cannot be used as registered capital.

Buy a property with crypto in Leasehold terms:

Leasehold terms are typically 30 years long lease with the possibility of renewal up to twice. The Land department registers the lease and does not require FET Forms for leased properties. Funds are therefore not required to come from overseas in a foreign currency, hence the digital currencies can be exchanged into THB through a local crypto exchange platform and then wired directly to the personal, individual or company’s bank account. This involves going through a KYC process. 

How to open a crypto exchange in Thailand?

To open a cryptocurrency exchange account in Thailand as a non-Thai national, you must physically be in Thailand. The requirements include providing a valid passport, a visa or work permit, and a proof of residence within Thailand, such as a rental agreement or utility bill. Additionally, applicants must comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, providing all necessary documentation to the exchange platform.

Receiving banks often require an official or authorized broker to handle the conversion of cryptocurrencies into Thai Baht (THB). Keller Henson can act as a third-party intermediary to assist with these conversions, ensuring that the process is compliant with local regulations when purchasing a property with cryptocurrencies.

Buy a Property with Cryptocurrency step by step

Buy in crypto from the developer vs opening a local exchange and paying in Fiat

Direct cryptocurrency purchases by foreigners are not legally recognized, so you'll have to pay in crypto to the developer directly and let it be handled internally or manage to get your crypto into fiat and do the payments the old fashioned way. 

• Thai developers: Thai developers like Origin, Mida Property have started accepting cryptocurrencies. You must first set up a wallet with a local Thai exchange, like Bitkub and then depending on the developer guideline, you may either convert the crypto into THB and transfer in THB or transfer crypto to the developer’s wallet directly.

• International developers: Some international developers like Andaman accept cryptocurrencies directly in their wallet.

Buy real estate in Thailand with crypto - Step-by-Step Guide:

Select a crypto friendly developer; follow the guideline from the developer :

The developer may accept a payment in crypto (BTC, ETH, USDT) to its wallet directly in ESCROW against an official receipt to be issued.  The developer commits to meet legal compliance and ensure the registration of your unit at the Land department will occur, as per terms of the Sales and Purchase Agreement. 

Select any property, open a local Thai crypto exchange, send your crypto to the platform, convert and pay in fiat: 

1. Set Up a Thai Crypto Wallet: Open a wallet on a Thai cryptocurrency exchange like Bitkub, as Thai developers typically require local wallets. 

2. Convert Cryptocurrency to THB: Depending on the developer's requirements, either convert your cryptocurrency to THB yourself or transfer it to the developer's wallet for them to handle the conversion.

3. Complete the Transaction: Once converted to THB, transfer the funds to the seller’s account. The sale will then proceed through the standard legal process, with all necessary documentation and fees completed in THB.

Choose a property from a crypto-friendly developer	Transfer deposit amount to developer crypto wallet	Get agreed about transfer conditions: crypto currency used, fixing exchange rate
Developer converts crypto into THB and make deposit to his Thai bank on behalf of buyer	Have your wallet ready in a Thai exchange licensed by the Ministry of Finance	Next payments in crypto follow the same process

Benefits and Risks of Using Cryptocurrency in Real Estate

Benefits of Using Cryptocurrency in Real Estate

Using cryptocurrency in real estate transactions offers several significant advantages:

1. Speed: Transactions are completed quickly, often within hours, bypassing the delays typically associated with SWIFT international transfers.

2. Lower Transaction Costs: Cryptocurrency transactions usually incur lower fees compared to international bank transfers and change fees 

3. Privacy: Cryptocurrencies provide a higher level of privacy, as personal banking information is not widely shared.

Potential Risks of Using Cryptocurrency in Real Estate

While using cryptocurrency in real estate offers several advantages, it also comes with some risks:

1. Price Volatility: Cryptocurrency prices can fluctuate dramatically in a short period, which could affect the value of your transaction between the agreement and completion.

2. Regulatory Uncertainties: The legal framework for cryptocurrencies is ever evolving, possible changes in regulations could impact the process and benefits using crypto for real estate.

3. Conversion Issues: Converting cryptocurrency to fiat currency (Thai Baht) is sometimes necessary which represents additional fees. 

Featured properties payable with Cryptocurrencies

List of properties you can buy with crypto in Thailand: 

Buy a property in crypto from the top THAI developers

Buy a house or a villa with crypto in Thailand 

 
In conclusion, purchasing real estate in Thailand with cryptocurrencies might offer significant advantages, however, the process can be complex for foreign buyers upon the type of properties and ownership terms. Keller Henson can assist you in buying a property in crypto ensuring maximum safety and compliance with Thai regulations. 

FAQ about buying a property with crypto in Thailand

------------------------------------------------------------ DISCLAIMER -----------------------------------------------------------

All information related to buying a property in Thailand is for guidance only. Some of the issues raised, such as real estate laws and taxation, may require expert advice and a more detailed, individual study. This article has been prepared in good faith, with information helpful to who intends to buy a property in Thailand as accurately as possible. Keller Henson cannot be held responsible for misinterpretation, changes or inaccurate information.