Thailand exempts capital gains tax on crypto through 2029

Thailand exempts capital gains tax on crypto through 2029

Tech in Asia·2025-06-18 17:02

Thailand’s Cabinet has approved a tax measure exempting capital gains tax on crypto transactions until December 31, 2029.

This decision, proposed by the Ministry of Finance, seeks to foster growth in the country’s digital asset sector.

Under this measure, personal income tax on capital gains from digital assets will be exempt if transactions occur through licensed businesses.

This includes exchanges, brokers, or dealers regulated by the Securities and Exchange Commission under the 2018 Digital Asset Business Decree.

The policy aims to encourage transparent trading and attract investment, with potential tax revenue estimated at over US$30 million.

Thailand previously removed its 7% value-added tax (VAT) on crypto gains and is considering allowing local Bitcoin ETFs while clamping down on unlicensed platforms.

The Finance Ministry also plans to adopt the OECD’s Crypto-Asset Reporting Framework to improve transaction transparency.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Thailand’s six-year crypto policy evolution shows strategic regulatory maturation

Thailand’s journey from initial crypto regulation to tax incentives demonstrates a deliberate policy progression rarely seen in other markets.

The country established one of the world’s first comprehensive crypto regulatory frameworks through Royal Decrees in May 2018, which mandated licensing for exchanges and set clear penalties for violations 1.

This early regulatory foundation contrasts with the current tax exemption approach, showing a shift from primarily controlling the sector to actively cultivating it while maintaining oversight through licensed operators.

The initial regulations created strict requirements, including director qualifications and investor protection provisions against insolvency, establishing safeguards that remain in place despite the new tax incentives 1.

Market data shows this regulatory clarity has been tested, with trading platforms like Bitcoin Co Ltd seeing volumes fluctuate from peaks of THB 1.5 billion in 2017 to THB 2 billion monthly by 2019, demonstrating the real-world impact of regulatory decisions on market activity 2.

2️⃣ The dual economic strategy: combining tax incentives with strict licensing requirements

Thailand’s approach represents a carefully balanced “carrot and stick” strategy that differentiates it from both crypto-friendly and crypto-restrictive jurisdictions.

The tax exemption applies exclusively to transactions through SEC-regulated businesses, incentivizing users toward compliant platforms while simultaneously blocking unlicensed operators like Bybit and OKX 3.

This selective approach aims to generate over 1 billion baht ($30.7 million) in indirect tax revenue despite the capital gains exemption, highlighting how targeted regulatory incentives can potentially increase overall economic activity 3.

The policy maintains compliance with international standards including FATF requirements, allowing Thailand to pursue growth while avoiding potential grey-listing concerns that could affect broader financial services 3.

The government’s projection of specific revenue figures indicates this is a calculated economic strategy rather than merely a promotional effort, with clear financial targets established for measuring success.

3️⃣ Southeast Asia’s emerging crypto regulatory competition

Thailand’s tax exemption signals intensifying regional competition to attract crypto businesses and investment capital across Southeast Asia.

Historical trading data shows Thailand’s market experienced significant volatility following its initial regulations, with exchanges like Satang Corporation delaying product launches due to decreased trading volumes 2.

The country’s decision to allow spot Bitcoin investment funds in 2024, coupled with this tax exemption, positions it differently from neighbors like Singapore, which has maintained stricter crypto regulations following the FTX collapse and Three Arrows Capital failure 3.

Thailand’s approach of balancing innovation support with regulatory oversight represents a middle path between Hong Kong’s recent pro-crypto pivot and more restrictive jurisdictions like Indonesia and Vietnam.

These policy changes indicate Thailand is leveraging its early regulatory framework advantage, established in 2018, to now focus on market growth while competing regionally for crypto business, talent, and investment.

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