Thailand Just Approved a Major Crypto Tax Loophole—Could It Save You Thousands?

Thailand has just become a more attractive destination for cryptocurrency investors. The country’s cabinet on June 17 approved a tax measure to exempt cryptocurrency transactions from capital gains tax for individuals for five years, as part of efforts to become a global cryptocurrency hub.

“Full steam ahead! The Thai government is accelerating efforts to position Thailand as a global digital asset hub,” Deputy Finance Minister Julapun Amornvivat said on X. “The key point of this law is to make the crypto market in Thailand more vibrant, attract foreign investment to help stimulate domestic consumption and may lead to other forms of taxation, such as value-added tax (VAT) in the future.”

Don't Miss:

• Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies.
• Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account.

The tax exemption, retroactive to Jan. 1, 2025, and effective through Dec. 31, 2029, better positions Thailand to compete with more established cryptocurrency hubs like Dubai, Singapore and the Bahamas, which also have zero cryptocurrency capital gains tax for individual investors.

“Thailand crypto HODLers are holding $180 billion, and clear regulations and tax reforms will help people to hold more crypto assets,” Thai-based BlockOn Ventures founder Jagdish Pandya told cryptocurrency news outlet Decrypt. “With the rise of Bitcoin three to 10 times after every halving and exponential industry growth, Thailand digital asset holdings can touch $1 trillion by 2030.”

Beyond offering tax savings for cryptocurrency investors, Thailand’s approach encourages compliance and the use of homegrown exchanges, as the tax exemption only applies to transactions carried out through licensed businesses regulated by the country’s Securities and Exchange Commission.

Trending: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase.

This aligns with the country’s current crackdown on unlicensed trading venues. In May, the Thai SEC announced plans to block access to international trading venues such as Bybit, OKX, CoinEx and XT for operating without a license.

Perhaps ironically, the tax exemption is also expected to increase tax revenue by 1 billion baht ($30 million) over the medium term, according to Amornvivat.

The recent tax exemption is the latest in a growing line of pro-cryptocurrency moves from Thailand in recent months. The country previously suspended rules that required a 7% value-added tax on cryptocurrency capital gains in February 2024. In January, the SEC announced it was considering allowing locally issued Bitcoin exchange-traded funds.

Finance Minister Pichai Chunhavajira also said in May that the country is considering legislation that would allow people to make payments with cryptocurrency-linked credit cards. In the backend, the cryptocurrencies will be converted to baht to merchants, Chunhavajira said at the time. He suggested the plan could streamline transactions for visitors.

In 2023, Statista estimated that about 13 million, or 18%, of people in Thailand, had used cryptocurrencies.

Read Next:

• A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase.
• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

Image: Shutterstock