Thailand is making waves in the world of cryptocurrency with a significant tax reform aimed at positioning the country as a leading crypto-friendly nation. The Cabinet recently approved a five-year personal tax exemption on profits from selling digital assets, such as Bitcoin, starting from January 2025 until December 2029.
Deputy Finance Minister Julapun Amornvivat took to social media platform X to announce that the capital gains tax will be waived for all crypto transactions carried out through licensed digital asset service providers (CASPs). This move is expected to attract more investment into Thailand’s digital economy, boost domestic consumption, and drive innovation.
The government anticipates that the tax incentive will contribute over 1 billion baht (approximately $30.7 million) to the economy in the medium term by encouraging both local and international participation in the crypto market. The Finance Ministry believes that the exemption will stimulate Thailand’s digital asset ecosystem, making it more vibrant and competitive.
Amornvivat stated that this tax exemption is part of a broader strategy to establish Thailand as a regional hub for blockchain innovation, token fundraising, and related digital businesses. The government sees this as a foundation for future tax policies, including the addition of value-added tax (VAT) on digital transactions.
In terms of regulatory efforts, the measure ensures that crypto trading remains compliant with anti-money laundering (AML) regulations under the oversight of the Thai Securities and Exchange Commission (SEC). The Revenue Department also plans to adopt the OECD’s Crypto-Asset Reporting Framework (CARF) to enhance transparency and reduce tax evasion risks in cross-border crypto transactions.
Thailand’s proactive stance towards the crypto sector is evident in its recent approval of stablecoins like Tether and USDC for digital trade. The country is also reportedly considering allowing spot Bitcoin ETFs. Despite this openness, authorities continue to enforce rules, including crackdowns on illegal crypto mining operations.
Overall, Thailand’s tax reform and regulatory efforts demonstrate its commitment to embracing and regulating the crypto industry, paving the way for a more robust and competitive digital economy in the country.