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Thailand’s Compliance Challenges for Fintech Companies

As Thailand’s fintech industry continues to grow, regulatory bodies have been working to establish a framework that balances innovation with consumer protection. The country’s fintech landscape is overseen by three key regulators: the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Office of Insurance Commission (OIC). In this article, we will delve into the compliance challenges facing fintech companies in Thailand.

Key Regulatory Frameworks

Thailand has established several key regulatory frameworks to govern the fintech industry. Some of these include:

  • Electronic Transaction Act 2001: Recognizes the validity of electronic transactions, ensuring they are treated equally to traditional paper-based transactions.
  • Payment Systems Act 2017: Regulates electronic payment formats and procedures, replacing the Electronic Payment Services Business Act 2008. It requires the Bank of Thailand to identify significant private sector e-payment systems that need regulation and makes recommendations to the Ministry of Finance.
  • Royal Decree on Digital Asset Businesses (2018): Specifically regulates digital assets and cryptocurrency, outlining requirements for creating a digital asset venture in Thailand. This includes defining types of tokens, fundraising methods, initial coin offerings (ICOs), and acceptable cryptocurrencies for ICOs.

Personal Data Protection Act

The Personal Data Protection Act is the first Thai law governing data protection, aligning with international standards such as the European General Data Protection Regulation (GDPR). Fintech businesses must:

  • Acquire consent from users
  • Use secure data storage infrastructure
  • Adhere to other requirements

Failure to comply can result in severe sanctions.

Compliance Challenges for Overseas Fintech Companies

Overseas fintech companies providing services to Thailand users must:

  • Appoint local representatives in Thailand
  • Operate based in a country with adequate data protection regulations to facilitate international data transfers

The compliance landscape for fintech companies in Thailand is complex, requiring a deep understanding of the regulatory framework. Businesses operating in this space must navigate the rules and regulations set by the BOT, SEC, and OIC to avoid non-compliance and potential penalties.

Contact Us

For further information on Thailand’s compliance challenges for fintech companies, please contact Richard Wee, Managing Partner at Richard Wee Chambers, at justright@richardweechambers.com.