In a bid to become a crypto hub, Thailand has removed value-added tax for crypto trading with immediate effect.
According to a report by the Bangkok Post, the Finance Ministry of Thailand is set to establish the country as a hub for crypto activities through a new tax reform.
Paopoom Rojanasakul, serving as the secretary to the finance minister, highlighted the ministry’s intention to promote the crypto market as a feasible avenue for fundraising, the report says, adding that the initiative is expected to not only strengthen Thailand’s economy but also foster the growth of its crypto sector.
Taking into effect from Jan. 1, 2024, the Finance Ministry has introduced the value-added tax (VAT) exemption, with no end date. Under this new directive, the 7% VAT obligation on income generated from crypto trading has been waived.
Previously applicable to authorized crypto exchanges only, the exemption now encompasses brokers and dealers supervised by the Securities and Exchange Commission (SEC) of Thailand. Furthermore, plans are underway between the Finance Ministry and the SEC to amend the 2019 Securities and Exchange Act to better align digital investment tokens with securities, the report says without providing specific details.
This move follows closely on the heels of initiatives by Kasikornbank Pcl, Thailand’s second-largest bank, which recently embarked on developing a digital-asset ecosystem, offering a unique avenue for fundraising to companies. As previously reported by crypto.news, the bank is encouraging select clients to explore token issuance as a means of raising capital.
Despite such efforts, caution prevails among Thais, especially in light of the 2017 crypto boom and subsequent market crash. According to Bloomberg, as of November, Thailand recorded approximately 116,000 active crypto trading accounts, a significant drop from the peak of around 700,000 in 2021, as indicated by official data.