Thailand approves five-year capital gains tax exemption on licensed crypto trading

Thailand plans to support its crypto economy by offering multi-year capital gains tax exemptions when trading on licensed cryptocurrency exchanges. According to an official statement from the Ministry of Finance, the Cabinet approved a new tax rule on 17 June, which waives personal income tax on capital gains from the sale of digital assets through licensed operators. The tax exemption will apply to trades made between January 1, 2025, and December 31, 2029. Tax exemption will boost revenue Deputy Finance Minister Julapun Amornvivat said the country was among the first to legislate crypto taxation and is now adjusting its tax structure to promote token-based fundraising and regulated crypto trading. Under the new policy, the exemption applies only to transactions conducted through licensed digital asset operators, including exchanges, brokers, and dealers approved under Thailand’s Emergency Decree on Digital Asset Businesses. With this, Thailand hopes to incentivise trading within the regulated ecosystem under the supervision of the Thai Securities and Exchange Commission (SEC), thereby targeting both growth and innovation with a single move. Officials believe the measure will not only encourage domestic crypto activity but also attract foreign investment. Estimates from the Ministry of Finance suggest the policy could generate over 1 billion baht, or roughly $30.7 million, in additional tax revenue over the medium term. The tax relief is also intended to reinforce Thailand’s commitment to regulatory transparency and financial compliance. Amornvivat has stressed that all qualifying platforms must meet strict Anti-Money Laundering and Know Your Customer standards, in line with guidelines from the Financial Action Task Force. The timing of the tax exemption also serves as an implicit warning to unlicensed platforms, signaling that only registered entities will benefit from the country’s crypto-friendly policies. Just last month, regulators cracked down on Bybit, OKX, and other non-compliant offshore exchanges. As previously covered on Invezz, the SEC has instructed the Ministry of Digital Economy and Society to enforce access restrictions beginning June 28 and has advised investors to withdraw funds ahead of the cutoff. The crackdown is part of a broader effort to eliminate platforms operating outside Thai jurisdiction and to steer users toward SEC-regulated providers. Officials said the campaign would help prevent financial crimes and protect investor funds. Supporting crypto adoption Amidst this backdrop, Thailand has continued to explore progressive crypto initiatives to promote adoption within its borders. In May, Finance Minister Pichai Chunhavajira announced a proposal to enable tourists to spend crypto via credit card-linked wallets, with merchants receiving baht as usual. The system is being reviewed for a potential pilot. Thailand also plans to unify its fragmented capital markets laws and has introduced government-issued investment tokens known as “G-Tokens,” which would allow retail investors to buy government bonds in smaller units and are intended to improve access and raise the profile of Thai sovereign debt. The post Thailand approves five-year capital gains tax exemption on licensed crypto trading appeared first on Invezz

Source: Invezz