- Minutes of Thailand’s finance cabinet meeting were released.
- The government plans tax relief and exemptions for the crypto industry.
- It hopes that the policies will speed up the growth of the industry.
Minutes of the latest cabinet meeting of Thailand’s Ministry of Finance reveal plans by the Thai government to boost the growth of the nascent market in the country. The minutes show plans for targeted tax exemptions and breaks.
Building Infrastructure For The Digital Economy
In what is now a string of pro-crypto policies, the Thai government has decided to approve certain tax relief measures for the trading of digital assets as well as tax exemptions for funding start-ups. In the statement, it was noted that the transfer of cryptocurrencies and digital assets on government-approved exchanges would be exempted from VAT. This policy would also apply to the country’s CBDC.
As disclosed by Mr. Arkhom Termpittayapaisith, Minister of Finance, and Mr. Santi Prompat, Deputy Minister of Finance, it was said that “this issue will allow Thai investors to trade digital assets on a reliable Thai exchange. Because it is under the supervision of the SEC and other government agencies. related and enabling Thailand to have a future payment infrastructure ready for the digital economy.”
The statement also read, “Tax relief for digital asset trading will help investors in digital assets to be comfortable in performing their legal duties. and get more fairness in paying taxes Including helping investors to trade digital assets that occur on Thai exchanges to be reliable, safe, and give people a choice in using digital money in the future.“
The new issue also covers tax exemptions for investors in crypto startups, either directly or indirectly through VCs. It is expected that this would “strengthen domestic investment This will enable the economy to expand sustainably and enhance the country’s competitiveness.” Investing in a startup for two years can guarantee tax breaks for up to 10 years.
Crypto trading is growing at an impressive rate in Thailand. Crypto trading accounts were growing by 27.6% month-on-month as of September 2021, far ahead of stock trading accounts. The new tax policies are expected to run from the 1st of April 2022 till the end of 2023.
Thailand Is Becoming A Crypto Haven
The present position on cryptocurrencies by the Thai government represents a huge shift from their stance in the summer of 2021. As of June 2021, the SEC had decided to enforce a ban on meme coins and NFTs.
However, the country has become more crypto-friendly in recent times. At the beginning of February, the government decided to hold off on implementing a 15% tax on cryptocurrencies after consideration and feedback from market participants.
Thailand, the second-largest economy in Southeast Asia, has roughly 10 times the number of active trading accounts as the United States. According to data from the country’s Securities and Exchange Commission, transaction volume increased by about 600% from November 2020 to April 2021. Their new policies are likely to attract more crypto investment and tourism, aside from building infrastructure.