Thailand Boosts Digital Asset Market with VAT-Free Crypto Trading

Thailand’s Finance Ministry recently announced a significant move to propel the country towards becoming a digital asset hub: the exemption of value-added tax (VAT) on digital asset trading.

Effective from Jan 1, 2024, with no expiration date, this VAT exemption aims to promote digital assets as a new fundraising tool. Paopoom Rojanasakul, secretary to the finance minister, highlighted the ministry’s goal to support the growth of the digital asset industry and facilitate Thailand’s digital economy.

To bolster Thailand’s position as a regional digital asset hub, tax rules have been eased, suspending the requirement to pay 7% VAT on income from cryptocurrency and digital token trading. Previously applicable only to authorised digital asset exchanges, the exemption now extends to brokers and dealers supervised by the Securities and Exchange Commission (SEC).

Furthermore, the Finance Ministry and SEC are in the process of amending the 2019 Securities and Exchange Act to align digital investment tokens more closely with securities.

This move is expected to further expand Thailand’s digital asset market, already attracting offshore digital asset investors. However, Mr Paopoom stressed the importance of balancing development potential with financial system stability.

Thailand’s new tax policies signal a significant step towards fostering a thriving digital asset ecosystem, positioning the country as a key player in the global digital economy.

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