Thailand Removes VAT for Crypto Trading to Boost Market
In a bid to establish itself as a crypto hub, Thailand has eliminated value-added tax (VAT) for crypto trading. The Finance Ministry of Thailand aims to promote the crypto market as a viable fundraising avenue and strengthen the country’s economy.
VAT Exemption Introduced with No End Date
Starting from January 1, 2024, the Finance Ministry has implemented a VAT exemption for income generated from crypto trading. This exemption now includes brokers and dealers supervised by the Securities and Exchange Commission (SEC) of Thailand.
Plans to Align Digital Investment Tokens with Securities
The Finance Ministry and SEC are working together to amend the 2019 Securities and Exchange Act, specifically focusing on aligning digital investment tokens with securities. However, specific details about these plans have not been provided.
Kasikornbank Pcl’s Efforts in Developing a Digital-Asset Ecosystem
Kasikornbank Pcl, Thailand’s second-largest bank, is also making efforts to create a digital-asset ecosystem. The bank is encouraging select clients to explore token issuance as a means of raising capital.
Caution Prevails Among Thais Despite Initiatives
Despite these initiatives, caution remains among Thais due to the 2017 crypto boom and subsequent market crash. As of November, Thailand recorded approximately 116,000 active crypto trading accounts, a significant decrease from the peak of around 700,000 in 2021.
Hot Take: Thailand Boosts Crypto Sector with VAT Exemption
Thailand’s decision to remove VAT for crypto trading is a significant step towards establishing itself as a crypto hub. By promoting the crypto market as a feasible fundraising avenue, Thailand aims to strengthen its economy and foster the growth of its crypto sector. The VAT exemption, applicable to brokers and dealers supervised by the SEC, further encourages participation in the crypto market. However, caution among Thais remains due to past market volatility. It is crucial for Thailand to continue implementing supportive measures and regulations to build trust and confidence among investors in the long term.
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