Thailand Scraps 7% VAT for Crypto Trading Indefinitelyby Fintech News Singapore February 8, 2024
Thailand’s Finance Ministry has officially removed the 7% value-added tax (VAT) on profits from cryptocurrency and digital token trades. This action, which took effect on 1 January 2024, is intended to propel the nation’s digital asset sector forward, offering an attractive alternative for fundraising endeavors.
The Bangkok Post revealed that the VAT exemption, previously slated to end in 2023, will now continue indefinitely.
The VAT exemption now applies to transactions executed via Thailand’s SEC-regulated licensed digital asset exchanges, as well as trades conducted by authorised brokers and dealers.
This policy change aims to alleviate the financial strain on crypto transactions, thereby reducing the cost of trading and enticing broader participation in the digital asset market.
Thailand has adopted a balanced approach towards cryptocurrency, implementing more lenient regulations in January, yet cautiously regulating the use of cryptocurrencies for payments to safeguard financial stability.
In an effort to regulate the burgeoning sector, Thailand introduced a licensing framework for cryptocurrency exchanges and brokers in 2018 under the Digital Asset Business Emergency Decree.
This regulatory measure enforces strict operational standards to bolster consumer protection and maintain the integrity of the financial system.