Bangkok is becoming a crypto centre, but Recap, a crypto tax software business, warns that the future may be bleak.
Last month, Recap’s Crypto Readiness Index placed Bangkok seventh worldwide. As published by the Bangkok Post on Feb. 7, 57 crypto firms have moved to Bangkok.
Recap also says Thailand has the second-highest crypto ownership rate. The military-backed administration banned digital asset payments last year.
Recap co-founder and CEO Daniel Howitt said:
“While Thailand banned the use of cryptocurrencies as a method of payment last March, the regulation doesn’t affect trading or investment activity,”
Despite good results, two Asian nations outranked Thailand. Recap’s most crypto-ready hubs ranking placed Hong Kong eighth and Singapore fourth. London won, followed by Dubai.
Bangkok may drop if the government and financial regulators get its way. Howitt cautioned that stricter crypto rules may slow crypto growth in the Kingdom.
“With stiffer laws, it’ll be fascinating to watch whether this helps or hurts Bangkok’s crypto center in the following months.”
Bangkok also underspends on research and development. Outside of Bangkok, crypto is hardly unknown in Thailand.
Recap ranked cities using eight criteria. Each city’s crypto employees, enterprises, meet-ups, quality of life, and R&D spending as a proportion of GDP were considered.
The Bank of Thailand and the Thai government remain skeptical about digital assets. Thai finance regulators tighten crypto trading and advertising limits this year.
BeInCrypto revealed a Thai Securities and Exchange Commission crypto crackdown in December. The action followed global efforts after the FTX crash in November.
Bangkok’s crypto future is uncertain under the current system, even though the study showed an optimistic outlook.