Crypto for Thai condos: A new approach for foreign buyers
Thailand’s allure as a destination for investment and residence continues to attract foreigners. However, the complexities of international money transfers and Thai regulations can be a significant hurdle. Mantix offers an innovative new solution for foreign buyers to purchase Thai condos with cryptocurrency.
Mantix, a European crypto payment service, chose Thailand as its initial market, offering a unique solution which enables buyers to pay with cryptocurrency even when sellers require payment in Thai baht.
As described by co-founder Shaun Rubrecht, Mantix offers a novel crypto payment service for buyers. This is a shift from most solutions, which offer a solution for sellers. Though buyer-centric crypto solutions exist, such as crypto debit cards, they usually involve smaller purchase amounts.
Though Mantix can facilitate purchases beyond condominiums, the company has chosen Thai condos as its initial focus. It’s important to note that this is not a tokenisation platform. Buyers acquire full, legal ownership of the property, with their names registered on the official deed.
How does the process work?
A foreign buyer first completes an onboarding form and proceeds to complete necessary compliance checks. Once those are cleared, the customer signs an agreement and Mantix issues an invoice, which the buyer pays using stablecoins.
Mantix liquidates the stablecoins and remits Euros into Thailand, meeting the requirement for foreign currency under the Condominium Act. Mantix’s Thai partner then issues the required checks for payment to the Land Office and seller, as well as prepares the Foreign Exchange Transaction (FET) paperwork for Land Office registration.
Mantix is a payment service, so it does not have real estate listings or handle property showings itself. The service benefits both buyers and real estate agents. Buyers can use crypto as a payment method while avoiding the need to have Thai bank accounts.
Agents can close more deals since cross-border transfers can be a major hurdle, which is solved by using crypto as the payment method, via Mantix.
What are the key considerations for buyers?
Mantix caters exclusively to international buyers, adhering to strict KYC, AML, and CFT regulations. Thai nationals are not eligible. Subject to successful compliance checks, Mantix facilitates transactions for foreign buyers from a diverse range of countries, including Russia and China.
Mantix’s service fees are comparable to standard credit card processing or international ATM withdrawal costs. While they may exceed fees for domestic over-the-counter (OTC) trades or exchange off-ramps, it’s crucial to acknowledge the increased complexity and costs inherent in cross-border transactions.
Mantix itself doesn’t assess any taxes related to cryptocurrency. The buyer is responsible for any capital gains or income taxes that may apply to them. Mantix solely facilitates the purchase using crypto as the payment method.
While Mantix specialises in condos, the service can also facilitate the purchase of other assets, such as leasehold real estate, cars, boats and tourism services, provided the purchase meets the minimum transaction value of US$50,000.
How does Mantix ensure legitimacy and compliance?
Mantix conducts KYC (know your customer) checks and screens potential customers against sanctioned persons and lists of politically exposed persons. As part of its AML (anti-money laundering) compliance, Mantix performs wallet screenings of the buyer’s crypto wallet and further requires source-of-funds documents to ensure that the funds were derived from legal sources.
Even though cryptocurrency is used as the payment method, the transaction is structured to comply with Thai law. Mantix has a VASP-registered European entity that liquidates stablecoins for euros and then remits the fiat currency into Thailand. The final settlement within Thailand is always conducted in Thai baht, so no cryptocurrency is used within Thailand.
As required under the Condominium Act, foreign currency must be remitted into Thailand and then converted into Thai baht at or above the purchase price of the condo.
Furthermore, the telegraphic transfer must refer to the buyer’s name, condo name, and condo unit number, so as to document compliance with that requirement and for Mantix’s Thai partner to issue FET documentation accordingly. Mantix handles these requirements on behalf of the buyer.
Mantix plans for the future
Mantix has been quietly building, relying on the expertise of its tech, legal, and banking professionals and bootstrapping without any external funding. With significant interest already received, the team plans to scale operations, expand into new countries, and implement a tech roadmap for enhanced efficiency, regardless of whether they choose to secure external investment or rely on revenues.
Future iterations of the Mantix platform will leverage decentralised wallet connectivity. Envisioning a Web3-native experience akin to purchasing a non-fungible token from an NFT marketplace, Mantix will enable real-time quotes of forex rates and digital asset valuations, allowing for most cryptocurrencies to be accepted as a payment option.
The customer agreement and invoice will be encoded as an encrypted NFT, secured with a key, creating an immutable and auditable record of their existence.
This approach ensures privacy while allowing the customer to open the document and share access to third parties. This technology presents a novel blockchain application for legal disputes, enabling the recording of offer, acceptance, and consideration within a single blockchain transaction.
Furthermore, Mantix will develop an AI-powered MLRO assistant, leveraging OCR and natural language processing, to streamline customer communication and source-of-funds document organisation.
This will enhance compliance processes while allowing for human MLRO oversight, forming the foundation of an AI-based compliance solution. These innovations not only enhance the core platform but also unlock the potential for new spinoff ventures for Mantix.
There is a waiting period to start using Mantix services due to current demand. Visit the Get Started section of Mantix’s website for more details and to secure a spot in the queue.
In collaboration with Mantix
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