The Thai government has just approved a major tax reform aimed at positioning the country as a top cryptocurrency-friendly destination.

On June 17, the Thai Cabinet approved a policy of exempting personal income tax for a period of 5 years on profits from the sale of digital assets, including Bitcoin. This policy will take effect from January 2025 and will last until the end of December 2029.

Deputy Finance Minister Julapun Amornvivat stated on platform X that capital gains tax will be exempted for all crypto transactions conducted through licensed digital asset service providers (CASPs).

This policy aims to attract more investment capital into the Thai digital economy, while also promoting domestic consumption and innovation.

The government expects this tax incentive will contribute over 1 billion baht (approximately 30.7 million USD) to the economy in the medium term by encouraging participation from both domestic and foreign investors in the cryptocurrency market.

Promote the Thai digital ecosystem

The Ministry of Finance believes that the tax exemption will facilitate the development of the digital asset ecosystem in Thailand, making the market more vibrant and competitive.

According to Mr. Amornvivat, this policy is part of a larger strategy to make Thailand a regional hub for blockchain innovation, token fundraising, and related digital enterprises.

He emphasized:

"This is an important step to enhance the economic potential of the country and create opportunities for Thai entrepreneurs to reach the global market."

The government also sees this as a foundation for future tax policies, including the possibility of applying value-added tax (VAT) to digital transactions.

Ensure compliance with the law

At the same time, the tax exemption policy still ensures that cryptocurrency transactions comply with anti-money laundering (AML) regulations, under the supervision of the Securities and Exchange Commission of Thailand (SEC).

In addition, the Thai Revenue Department plans to implement the Common Asset Reporting Framework (CARF) proposed by the OECD, to share digital asset data with international tax authorities.

The goal is to increase transparency and minimize tax evasion risks in cross-border cryptocurrency transactions.

This is one of many steps taken by the Thai government to ride the global crypto wave.

Thailand has shown a clear openness by approving the use of stablecoins like Tether and USDC in digital transactions. Some sources have also indicated that the country is considering allowing spot Bitcoin ETFs.

However, authorities still maintain strict control, exemplified by recent crackdowns on illegal cryptocurrency mining activities.