The Government of Thailand has taken a historic decision to promote investment and trading in crypto. According to the announcement of the Ministry of Finance, there will be no capital gains tax (Crypto Tax) on income from the sale of cryptocurrency in Thailand from January 1, 2025 to December 31, 2029, provided the trade is through authorized crypto asset service providers.
This decision is a big step towards bringing crypto trading under a regulated framework and establishing the country as a global financial hub. With this, Thailand has joined the leading countries in Asia to adopt crypto friendly policies.
Purpose of tax exemption on crypto transactions
The Government of Thailand believes that crypto transactions can prove to be helpful not only in investment but also in fundraising, innovation and expansion of the digital economy. Deputy Finance Minister Julapun Amornvivat clarified that this crypto tax exemption is being given in compliance with the FATF (Financial Action Task Force) AML Guidelines, which will curb illegal activities.
According to the ministry, this move will generate additional tax income of 1 billion baht (about $30.7 million) to Thailand's economy in the mid-term.Can India also take such a step?
After this historic step taken by Thailand, it is natural to raise the question about India, should a digital power like India not also make crypto transactions tax friendly?
India is considered the world's largest IT hub. We have a huge and skilled technical workforce, a rapidly growing digital economy, centers of excellence for global companies, a strong startup ecosystem and government initiatives like "Digital India".
With all these elements, if the government brings a tax exemption policy on crypto transactions, it can provide new opportunities to engineers, developers and startups. This will not only boost new technologies like blockchain and Web3, but India can also make itself a global leader in innovation and financial technology.
What does Crypto Tax Exemption mean for Thailand's investors and industry?
This Crypto Tax Exemption in Thailand establishes crypto as an institutionally recognized investment tool. This will especially attract investors who are currently operating in the grey area due to the tax burden.
On the other hand, due to stringent policies like 30% tax and 1% TDS in India, many investors have turned to offshore exchanges, due to which the country is losing both tax revenue and technology.
Thailand's recent crypto policy and activity
The Thai government has not only moved towards a crypto tax amnesty, but they also planned to allow tourists to spend in crypto in May. This will increase the practical use of crypto in the country.
With this, the government banned exchanges like Bybit, OKX, CoinEx, XT.COM, which were operating without a local license. That is, the government is balancing both regulation and innovation.
Companies like KuCoin have obtained SEC license in Thailand, while Tether has launched its tokenized gold here. It is clear from this that Thailand is looking at crypto as a digital asset class, not just a trading tool.