Thailand Exempts VAT on Digital Asset Trading
The Finance Ministry of Thailand has announced that it will exempt value-added tax (VAT) on digital asset trading. The goal is to position Thailand as a leading digital asset hub and promote the growth of the industry. The exemption, which took effect on January 1, 2024, has no expiration date, providing a long-term incentive for investors and traders in the digital asset space. Previously limited to authorized digital asset exchanges, the VAT exemption has now been extended to brokers and dealers under the supervision of the Securities and Exchange Commission (SEC).
Amendments to Securities and Exchange Act
To solidify its position as a digital asset hub, Thailand’s Finance Ministry and SEC are working on amending the 2019 Securities and Exchange Act. These amendments will enable digital investment tokens to be regulated like securities, creating a more secure environment for investors. Thailand has become a top destination for offshore digital asset investors, and these tax policies are expected to further boost the country’s digital asset market.
Easing Restrictions on Crypto Investing
The SEC of Thailand has updated its criteria for investing in digital tokens, easing some restrictions. Retail investors can now invest in real estate-backed ICOs and infra-backed ICOs without the previous investment limits. The SEC has also revised the criteria for custodial wallet provider businesses, allowing them to offer services to digital asset operators. However, spot Bitcoin exchange-traded funds (ETFs) will not be allowed for trading in Thailand, despite their approval in the United States.
Hot Take: Thailand Pushes Towards Digital Asset Hub
Thailand’s decision to exempt VAT on digital asset trading is a significant step towards establishing itself as a leading digital asset hub. By promoting the growth of the industry and providing long-term incentives for investors, Thailand aims to attract more digital asset businesses and investors to its market. The amendments to the Securities and Exchange Act will further enhance investor protection and regulation in the digital asset space. While Thailand is embracing digital assets, it remains committed to ensuring the stability of its financial system. These developments signal a positive future for the country’s digital asset industry.
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