Capitalargo.com – The blockchain revolution has swept across Southeast Asia, and Thailand is no exception. The country has positioned itself as one of the most progressive digital economies in the region, thanks to government initiatives promoting fintech innovation and digital asset regulation. Yet, despite this promising environment, many blockchain startups in Thailand continue to face a wide range of challenges that slow their growth and limit scalability.
In 2025, Thailand’s blockchain ecosystem stands at a pivotal crossroads. While adoption is accelerating in areas such as decentralized finance (DeFi), supply chain management, and tokenized assets, early-stage blockchain ventures are grappling with complex regulatory hurdles, limited venture capital access, and a shortage of skilled professionals. Understanding these barriers is essential for both entrepreneurs and investors aiming to shape Thailand’s digital future.
This article examines the challenges facing early-stage blockchain startups in Thailand, how they impact the country’s innovation landscape, and what solutions could pave the way for a more sustainable blockchain-driven economy.
Thailand’s Blockchain Landscape: A Promising Yet Complex Environment
Thailand has been relatively quick to recognize the potential of blockchain technology. Since 2018, the Thai Securities and Exchange Commission (SEC) has introduced frameworks for digital assets, enabling regulated exchanges and Initial Coin Offerings (ICOs). In parallel, the Bank of Thailand (BoT) has experimented with a central bank digital currency (CBDC) and blockchain-based payment systems.
This proactive stance has encouraged the emergence of dozens of blockchain startups, ranging from decentralized applications (dApps) and tokenization platforms to cross-border payment networks. However, the regulatory clarity that once seemed progressive is now evolving into a double-edged sword.
While the legal recognition of digital assets has legitimized the industry, it has also created complex compliance requirements that are difficult for small, early-stage ventures to navigate.
Regulatory Ambiguity: The Biggest Hurdle for Blockchain Entrepreneurs
One of the primary challenges facing early-stage blockchain startups in Thailand is navigating the regulatory maze. Although Thailand’s SEC has been among the first in Asia to regulate digital assets, the framework is still evolving and often interpreted inconsistently.
Startups face difficulties in understanding whether their business models—especially those involving tokens, staking, or DeFi—fall under securities law. In many cases, startups are required to obtain multiple licenses from the SEC, BoT, or the Ministry of Digital Economy and Society (MDES), which can take months and involve significant costs.
Moreover, new amendments to Thailand’s Digital Asset Decree have imposed stricter rules on exchanges, wallet providers, and token issuers. For early-stage projects operating with limited resources, the administrative and legal burdens can be overwhelming.
Some startups attempt to bypass these challenges by registering their operations in more crypto-friendly jurisdictions such as Singapore or Hong Kong. However, this relocation trend undermines Thailand’s ambition to become a blockchain innovation hub.
Access to Funding: The Persistent Capital Gap
Another major obstacle for blockchain startups in Thailand is the lack of accessible funding at the early stage. Although global venture capital has poured billions into blockchain projects worldwide, Southeast Asia—particularly Thailand—still attracts a relatively small share.
Investors in Thailand remain cautious about blockchain-related ventures due to perceived risks, regulatory uncertainty, and limited local success stories. Many traditional venture capital firms lack the technical expertise to evaluate blockchain startups, leading to underfunding even for promising ideas.
Crowdfunding and Initial Coin Offerings (ICOs), once popular funding mechanisms, have become heavily restricted under Thai law. The SEC now requires licensed intermediaries to oversee any token sale, effectively increasing the cost and complexity of fundraising.
As a result, many blockchain startups rely on bootstrapping, small angel investors, or partnerships with foreign accelerators. This approach limits their ability to scale quickly or compete with better-funded global players.
Talent Shortage and Brain Drain
The demand for blockchain talent in Thailand far exceeds supply. Skilled developers, cryptographers, and blockchain architects are scarce, and competition for expertise is fierce. Startups often find it difficult to attract or retain qualified professionals who can design, build, and maintain decentralized systems.
Many Thai developers are drawn to better-paying opportunities abroad, particularly in Singapore or Europe, where blockchain ecosystems are more mature. The resulting brain drain exacerbates the talent gap at home, forcing local startups to rely on outsourced teams or international collaborations.
Furthermore, Thailand’s educational institutions are only beginning to integrate blockchain-related courses into their curricula. While a few universities offer fintech programs, comprehensive blockchain education remains limited. This mismatch between academic training and industry needs poses a long-term challenge for talent development.
Market Adoption and Public Perception
Even as blockchain technology gains global traction, mass adoption in Thailand remains limited outside of niche sectors. Public understanding of blockchain is still superficial, often associated solely with cryptocurrency speculation.
Businesses in traditional sectors—such as logistics, agriculture, and manufacturing—are hesitant to integrate blockchain solutions due to cost concerns, technical complexity, and skepticism about return on investment.
Moreover, the collapse of several global crypto exchanges in recent years has eroded public trust. For many Thais, blockchain remains synonymous with volatility and risk, rather than transparency and innovation.
This perception challenge creates a market barrier for early-stage startups, which must spend significant time and resources on education and awareness before securing clients or partnerships.
Infrastructure and Scalability Issues
Thailand’s digital infrastructure, while improving, still presents limitations for blockchain deployment. High transaction costs, latency issues, and lack of standardized data integration hinder blockchain scalability in large-scale enterprise applications.
While some government agencies have adopted blockchain pilots—for instance, the Excise Department’s tax refund system and the Ministry of Commerce’s intellectual property registry—these initiatives are still in experimental phases.
For startups aiming to develop enterprise-grade blockchain products, the lack of robust cloud services and interoperable data frameworks poses significant hurdles. Without scalable infrastructure, innovative ideas remain trapped in prototype stages.
Legal and Taxation Uncertainty
The legal status of blockchain-based assets continues to evolve, leading to uncertainty about taxation, intellectual property, and consumer protection. For instance, the Thai Revenue Department has struggled to define clear rules for cryptocurrency profits and blockchain-related business transactions.
Startups face difficulties in calculating tax obligations for token sales, staking rewards, or decentralized service revenues. The lack of clarity discourages investors and complicates long-term financial planning.
Legal professionals specializing in blockchain are also scarce, forcing startups to rely on limited advisory resources or costly international consultants.
Cultural Resistance to Decentralization
Beyond regulatory and financial barriers, cultural attitudes also shape the challenges facing blockchain startups in Thailand. The country’s business environment has traditionally favored hierarchical, centralized structures. Blockchain’s decentralized ethos—emphasizing transparency and distributed control—often clashes with these conventions.
As a result, many organizations remain reluctant to adopt decentralized platforms or governance models, preferring traditional centralized systems that offer more control. For startups advocating decentralization, changing this mindset becomes an uphill battle requiring years of education and demonstration.
Global Competition and the Regional Landscape
Thailand is competing not only within its borders but also against regional players such as Singapore, Vietnam, and Indonesia, all of which are investing heavily in blockchain ecosystems. Singapore’s clear regulatory framework and government-backed innovation funds make it a preferred destination for startups and investors.
Vietnam, on the other hand, has become a hub for blockchain gaming and NFT platforms, supported by a young, tech-savvy population. Compared to these countries, Thailand’s startup ecosystem remains smaller and less integrated, creating a competitive disadvantage.
To thrive in this regional context, Thailand must enhance cross-border collaboration, streamline regulations, and promote interoperability standards that allow startups to scale beyond domestic markets.
Government and Institutional Efforts
Despite the challenges, Thailand’s government has shown willingness to foster blockchain innovation. The BoT’s Project Inthanon, developed in partnership with R3, explores blockchain-based interbank settlement systems. Similarly, the Thailand Blockchain Community Initiative (BCI)—a consortium of major banks—uses blockchain to streamline letters of guarantee.
The Digital Economy Promotion Agency (DEPA) and MDEC have also launched programs to support startups through funding, training, and international partnerships.
However, many entrepreneurs argue that these efforts are often bureaucratic and slow to adapt to the fast-moving blockchain landscape. A more agile and open regulatory sandbox could provide startups with the flexibility they need to experiment and grow.
Strategies to Overcome Barriers
To address the challenges facing early-stage blockchain startups in Thailand, a multi-pronged approach is required involving government, private sector, academia, and investors.
- Regulatory Clarity: Establish transparent, consistent rules that differentiate between blockchain use cases.
- Funding Ecosystem: Encourage local VC firms to specialize in blockchain and incentivize cross-border funds.
- Education and Talent Development: Expand blockchain-related academic programs and industry certifications.
- Public Awareness: Promote blockchain success stories in non-crypto sectors.
- Infrastructure Investment: Build cloud, data, and digital identity systems compatible with blockchain.
By aligning these strategies, Thailand can transform its blockchain sector into a regional powerhouse.
Future Outlook: A Gradual but Promising Evolution
While the blockchain startups in Thailand ecosystem continues to face significant challenges, the long-term prospects remain optimistic. The country possesses the regulatory foresight, entrepreneurial energy, and digital infrastructure needed to sustain innovation—if managed effectively.
Over the next five years, blockchain applications in Thailand are expected to expand beyond finance into supply chain, renewable energy, and digital identity management. With the right policy reforms and investment strategies, Thailand could position itself as a leading blockchain hub in Southeast Asia.
Recent trade developments, such as the Thailand-South Korea trade accord, could open new avenues for blockchain in cross-border trade and logistics. Similarly, Thailand’s industrial quick-win pledges may accelerate enterprise blockchain adoption.
Ultimately, the nation’s success will depend on its ability to balance regulation with innovation, ensuring that early-stage startups can not only survive but also scale sustainably in an increasingly competitive global market.
Note: While blockchain grows, external factors like new U.S. tariffs impacting Thai exports and Philip Morris’ massive tax cut may influence corporate budgets for tech innovation.
