Aiming to become a crypto hub, Thailand has immediately abolished value-added tax on crypto transactions.
According to a report in the Bangkok Post, Thailand's Ministry of Finance plans to establish the country as a center of crypto activity through new tax reforms.
Mr. Paopum Rojanasakul, Secretary to the Minister of Finance, emphasized the ministry's intention to promote the virtual currency market as a viable means of raising funds, stating that this initiative will not only strengthen the Thai economy but also promote Thailand's growth. The report added that they are expected to do so. Its crypto sector.
The Treasury has introduced a value added tax (VAT) exemption with effect from 1 January 2024 with no end date. Under this new directive, income derived from virtual currency transactions will be exempted from the 7% VAT obligation.
Previously only applicable to licensed virtual currency exchanges, this exemption now also applies to brokers and dealers supervised by the Securities and Exchange Commission of Thailand (SEC). Additionally, the report states that plans are underway between the Treasury Department and the SEC to amend the Securities Exchange Act of 2019 to better align digital investment tokens and securities, but specific details are not available. has not been disclosed.
The move follows efforts by Kasikornbank PCL, Thailand's second-largest bank, which recently began developing a digital asset ecosystem and offering unique financing avenues for businesses. As previously reported by crypto.news, the bank is encouraging selected customers to consider token issuance as a means of raising capital.
Despite these efforts, there is a growing sense of wariness among Thais, especially in light of the 2017 cryptocurrency boom and subsequent market crash. As of November, Thailand recorded around 116,000 active cryptocurrency trading accounts, according to Bloomberg, a significant decrease from a peak of around 700,000 in 2021, official data shows.
