Wasu Law

04/08/2024

15/10/2022

Can I use a cryptocurrency to buy a real estate in Thailand?

Short answer: No, but bartering is possible in some cases.

As I explained in the previous article, a cryptocurrency is a property, but not money, so you may use it for bartering, but not buying and selling.

So, if I give someone some bitcoins in exchange for a villa (exclusive of the land), won’t that work?

Yes, it will work in the form of a bartering agreement – i.e. I give you something and you give me something in return.

Unfortunately, you cannot use a bartering agreement in all cases. For example, if you are a foreigner who does not have permanent residency in Thailand, according to the Condominium Act B.E. 2522, you can get a freehold condominium unit either by buying it with money from overseas or by inheriting it. This is why the evidence of inward remittances and the evidence that a payment has been made to the seller are required.

Nevertheless, don’t forget that when you buy a condominium unit, you are not only buying the real estate, but also the interior furnishings, the furniture, the bathroom fixtures and appliances and the electrical appliances that come with it. This is why you may pay six million baht for a condominium unit and later find out that the price shown in the real estate sale agreement at the Land Office is only five million baht. For this part, you certainly can use a bartering agreement.

Lastly, it should be noted that the Civil and Commercial Code Section 150 provides that an act is void if its object is expressly prohibited by law or is impossible, or is contrary to public order or good morals. As the use of cryptocurrencies in bartering agreements may destabilize the Thai baht, it has a good chance to regarded by the Supreme Court as “contrary to public order” someday in the future. The result of which would be that such bartering agreements shall be void – meaning the transaction shall be revoked and each party shall get back their property. To date, there is no such Supreme Court judgement yet, but we never know the future. When there is such a Supreme Court judgement, your lawyer will let you know. This is why it is important to always consult a lawyer before buying a real estate.

As I always emphasize, buying a real estate is a big investment, any fee you have paid your lawyer in making sure that a contract has no problems and a real estate you want to buy has no legal complications is worth spending, even if in the end you end up not buying it.

Now, I believe you clearly understand how Thai law treats cryptocurrencies. Then, what if you trade cryptocurrencies and make money from it? Will you have to pay tax on the capital gain, and how much?

The creator of this article is Mr. Wasu Koysiripong. All right reserved. An infringement action may be brought against whoever duplicates, disseminates, or appropriates this article, wholly or in part, without the creator's permission.

15/10/2022

What is the status of cryptocurrencies under Thai law? Can I use cryptocurrency coints to buy anything in Thailand?

The Currency Act B.E. 2501 Section 9 stipulates that no person shall make, issue, use or put into circulation any material or
token as money except with permission from the Minister of Finance.

To date, as there is no permission from the Minister of Finance to regard any cryptocurrency as a currency, cryptocurrency coints are still not considered money by Thai law.

So, what are they?

The Civil and Commercial Code Section 137 defines that things are corporeal objects, and Section 138 defines that properties include things as well as incorporeal objects, which are priceable and appropriable.

As cryptocurrencies are incorporeal (intangible), priceable and appropriable; according to the definitions, they should be regarded as properties, but not things. Please note that there is no Supreme Court precedent judgement to confirm this, and the Supreme Court has regarded electricity, which also seems to be incorporeal, as a thing, owing to the fact that electrical sparks can be seen and touched, pursuant to Supreme Court Judgement 877/2501 (Big conference).

In short, a cryptocurrency is a property, but not money.

What does it mean? It means you cannot claim "I owed you 700,000 baht, which was equivalent to 1 bitcoin. As I've transferred 1 bitcoin to you, I've already paid the debt."

However, if you have a contract with a landlord that "I'll give you 1 bitcoin in exchange for a permission for me to use your house for my residence for 3 years.", this will work. Change "1 bitcoin" to "20 tons of rice" and you'll get an idea. It's a bartering agreement.

What if you want to use bitcoin to buy a real estate in Thailand?

This will be the topic of our next post, so follow us for a notification.