Thailand Abolishes Crypto Capital Gains Tax Until 2029

Thailand has officially announced a complete exemption from capital gains tax on cryptocurrency transactions conducted via licensed domestic platforms. According to IMI Daily, this measure will remain in effect until December 31, 2029, and applies to trades carried out on registered exchanges, brokers, and dealers regulated under Thailand’s 2018 Digital Asset Act.

The tax exemption is part of a broader strategy to encourage investment. Authorities have also proposed a temporary exemption on foreign income repatriated to Thailand within two years. This initiative aims to stimulate capital inflow and could potentially affect over THB 2 trillion (approx. USD 58.8 billion) in offshore assets held by Thai residents.

Thailand is determined to position itself as a regional financial hub. Officials believe that regulatory clarity and transparent tax rules can increase investor confidence. In February 2024, the country scrapped the 7% VAT previously imposed on crypto-related income. Additionally, the Thai Securities and Exchange Commission has begun drafting a regulatory framework for launching Bitcoin ETFs on local exchanges. These developments reflect Thailand’s response to the growing international competition in the digital finance sector.

Tax incentives in Thailand are accompanied by strict enforcement measures. The Securities and Exchange Commission, the country’s financial regulator, has prohibited five major international crypto exchanges—including Bybit, OKX, CoinEx, and XT.COM—from offering services to Thai residents without a local license. Furthermore, Thailand’s Revenue Department plans to implement the OECD’s Crypto-Asset Reporting Framework (CARF).

Meanwhile, major players that comply with regulatory requirements are expanding their presence in the Thai market. For instance, the KuCoin exchange has secured a local license and started operations in the country. Tether has also launched a tokenized digital asset backed by gold on the Maxbit platform.

The Thai government anticipates that the new tax policy will deliver significant economic benefits, according to Decrypt. The Ministry of Finance estimates that crypto assets could boost tax revenue by at least THB 1 billion (approx. USD 30.7 million) in the medium term. Analysts suggest the impact could be even more substantial, given that Thailand ranks second in Southeast Asia in digital asset concentration, and the sector continues to grow rapidly.

i“Crypto holders in Thailand already own digital assets worth USD 180 billion, and clear regulation combined with tax reforms creates an environment for further accumulation,”* said Jagdish Pandya, founder of Blockon Ventures and organizer of Thai Blockchain Week. He predicts that by 2030, the volume of digital assets held by Thai residents could reach USD 1 trillion. Pandya attributes this growth to the expected post-halving surge in Bitcoin and the industry’s overall exponential development. He also emphasized that cities like Chiang Mai and Phuket are gradually evolving into regional Web3 hubs, attracting foreign professionals and companies.*

The tax exemption applies exclusively to transactions conducted via licensed platforms regulated by Thailand’s Securities and Exchange Commission. This includes crypto exchanges, brokers, and dealers operating under the Digital Asset Act. The requirement aims to comply with anti-money laundering (AML) standards recommended by the Financial Action Task Force (FATF). However, experts note that access to these benefits may be limited.

Archer Wolfe, co-founder of MohrWolfe and a former resident of Thailand, commented that the country’s largest crypto exchange, Bitkub, will likely be the primary participant in transactions qualifying for the tax exemption. However, questions remain about who will ultimately be allowed to use these platforms. He highlighted that access rules can change overnight, with platforms periodically restricting foreign users and granting operations only to Thai residents.

Deputy Finance Minister Julapun Amornvivat stressed that Thailand is among the first countries to introduce specific legislation for digital assets and their taxation. According to him, this is a crucial step toward becoming an international financial center. Similar practices already exist elsewhere. For instance, Singapore, Malaysia, and the United Arab Emirates do not impose capital gains tax on individual investors. Zero rates also apply in various offshore jurisdictions, including the Cayman Islands, British Virgin Islands, Vanuatu, and the Bahamas.

In Georgia, capital gains from crypto trading for individuals holding tax residency are exempt from personal income tax, as they are considered foreign-sourced income. Converting crypto to local or foreign currency is also VAT-exempt. Corporate entities engaged in crypto trading pay a 15% profit tax only when profits are distributed. Additionally, a 5% withholding tax applies to dividends. Crypto miners in Georgia are treated as individual investors and are also exempt from profit tax.

Across Europe, tax benefits apply under specific conditions. In Germany and Portugal, for instance, investors can avoid capital gains tax if they hold crypto for more than one year. In contrast, Brazil recently abandoned its previous policy and imposed a flat tax rate of 17.5% on all crypto income.

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