In June 2025 Thailand’s cabinet approved a landmark tax waiver that effectively exempts capital gains on cryptocurrency trading for five years (Jan 1, 2025–Dec 31, 2029). The measure was adopted via a draft Ministerial Regulation under the Thai Revenue Code and is intended to promote Thailand as a regional “digital asset hub”. In practice, personal income tax on capital gains from selling digital assets is set to zero for qualifying trades. Crucially, the exemption applies only to trades executed through SEC licensed Thai platforms – specifically exchanges, brokers or dealers registered under the Digital Asset Business Act (2018). All other crypto transactions (e.g. on offshore/unregulated venues) remain subject to normal tax rules. Deputy Finance Minister Julapun (Chulaphan) Amornvivat emphasized that this is “to make the crypto market in Thailand more vibrant, attract foreign investment… [and] promote transparent trading”. As one analysis put it, the cabinet “approved a tax measure to exempt cryptocurrency transactions from capital gains tax for individuals for five years”.
Key Provisions
Under the approved regulation, individual investors pay no income tax on any capital gains from digital-asset trades – meaning they keep 100% of profits – provided the trades occur on Thai-licensed platforms. The exemption is explicitly limited to person-to-person gains: it covers “personal income tax on capital gains” from selling digital assets. For example, Bitkub Exchange (Thailand’s largest crypto exchange) announced that “capital gains” from sales of cryptocurrencies, Investment Tokens and Utility Tokens will enjoy full tax exemption under this policy. Prior to the exemption, crypto traders faced up to 35% total tax (including 15% withholding) on gains; under the new rules those taxes simply vanish for eligible trades through Dec 2029. The dates are clear: 1 Jan 2025 – 31 Dec 2029 (five years). After 2029, unless the policy is extended, normal capital gains tax would resume. Officials note that the exemption is part of a broader package (e.g. earlier VAT exemptions and token fundraising benefits) and that the Revenue Department is simultaneously adopting OECD “Crypto-Asset Reporting” standards to ensure future transparency.
This carve-out is effectively a five-year tax holiday for crypto traders – sometimes dubbed a “loophole” in the press. In essence, the government has inserted a temporary exclusion into tax law: by ministerial decree under the revenue code, gains from digital asset sales (via regulated channels) are excluded from taxable income. As Finance Ministry statements explain, Thailand is among the first countries to legislate such an exemption, aligning with OECD/FATF recommendations while spurring crypto activity.
Who Benefits
The primary beneficiaries are individual crypto investors and traders using licensed Thai exchanges. Any Thai resident (or foreigner taxed as an individual in Thailand) can pocket gains tax-free on approved platforms. Licensed exchanges and brokers also benefit indirectly: the tax break is a strong incentive to trade on regulated domestic venues rather than offshore ones. The Thai SEC recently blocked major foreign exchanges (Bybit, OKX, CoinEx, XT.com, etc.) for operating without local licenses, so clearing the advantage for Thai-licensed firms. In fact, Bitkub immediately launched a “0% tax” promotion in response, and other exchanges (like KuCoin and Tether’s partners) are expanding in Thailand to capture new volume.
Foreign cryptocurrency investors may also see gains. By exempting crypto profits at source, the law lets anyone trading on Thai exchanges avoid Thai capital-gains tax altogether. (However, foreign traders must still heed tax laws in their home countries.) Overall, the policy “draws foreign capital” by making Thailand tax-competitive with places like Dubai, Singapore or the Bahamas. Thailand’s digital-asset ecosystem (including startups and funds) is meant to flourish: as one crypto entrepreneur noted, clear rules and this exemption could help Thailand’s crypto holdings grow from ~$180 billion today toward “$1 trillion by 2030”. In short, retail investors get bigger take-home gains, and exchanges capture more business.
Context and Motivations
The exemption is explicitly motivated by economic and strategic aims. Finance Minister Julapun (Chulaphan) said Thailand is “accelerating efforts to position Thailand as a global digital asset hub”. Officials expect the policy to boost economic activity (and thereby indirect tax revenues) by at least 1 billion baht over the medium term. The stated goal is to attract new investment, stimulate innovation (e.g. blockchain startups and tokenized fundraising), and compete with other crypto-friendly jurisdictions. Importantly, the government ties the policy to transparency: by restricting it to SEC-regulated trades and working with the OECD’s Crypto-Asset Reporting Framework, they argue it helps Thailand adhere to global AML standards.
This direction echoes earlier tech-forward proposals in Thai politics. (For example, former PM Thaksin Shinawatra had advocated making Thailand a blockchain hub and even piloting crypto as a local currency in Phuket.) Today’s ruling coalition, led by the Pheu Thai Party, appears keen to deliver on these ideas. The exemption also comes amid broader tax reforms: for instance, in March 2024 the government removed double taxation on “investment token” offerings. Commentators view the move as largely pro-growth. A Bangkok Post analysis noted it “helps legitimize” crypto in Thailand and “integrate digital assets into the global financial system”.
While upbeat on economic benefits, some observers have noted the potential revenue sacrifice and the narrow scope (just five years, just individuals). Local press has framed it as a tax break or “loophole” to draw attention to the unusual tax-free status. However, Finance Ministry sources emphasize it is a strategic choice, not a gimmick.
Implementation in Thai Law
Legally, the exemption is enacted via a draft ministerial regulation under the Revenue Code. This regulation invokes the Code’s general exemption powers to carve out crypto gains from taxable income. In effect, it amends the tax treatment of digital assets without changing the main tax law itself. Under current law, capital gains (whether from stocks or crypto) normally count as income. The new regulation simply suspends that rule for crypto gains through licensed providers for the specified period. Concretely, Thai traders will file tax returns as usual, but report zero taxable gain on any crypto profits from qualifying trades. The tax authority (Revenue Department) will rely on exchange reports to enforce this. The government notes it is simultaneously crafting the OECD-aligned Crypto-Asset Reporting Framework (CARF) into Thai regulations, which will allow Thailand to share crypto transaction data internationally even as it offers this exemption.
Importantly, the exemption is explicitly temporary and conditional. It only lasts five years, and only covers trades on providers “supervised by the SEC”. Any coin swaps or decentralized trades off-platform would not qualify. Once the five-year window closes (Dec 2029), capital gains tax on crypto returns unless a new law is passed. The finance minister has hinted that future crypto taxation may shift to VAT or other forms rather than personal gains tax.
Expert and Industry Reaction
Industry leaders and analysts have broadly welcomed the exemption. Bitkub’s founder Jirayus (a former SEC board member) publicly thanked the government for “listening to crypto industry voices” and called the tax break a “significant policy change” to drive Thailand’s economy and leadership in digital assets. Crypto fund managers note it puts Thailand ahead of neighboring countries (Vietnam, Malaysia, etc.) that still tax crypto gains, making Bangkok more competitive for crypto investment. BlockOn Ventures founder Jagdish Pandya told Decrypt that Thai crypto holders (~$180 b) could “exponentially” increase their holdings under such clear incentives.
Government officials highlight the trade-offs. Deputy Minister Julapun (Chulaphan) explained on social media that the law “is about transparent trading, technological development, and sustainable growth,” and that indirect tax revenues will rise through expanded economic activity. He repeatedly frames the measure as an investment in Thailand’s financial infrastructure: “Thailand is rolling out tax measures… by exempting personal income tax on crypto profits made through SEC supervised platforms,” he tweeted. These statements underscore the political/economic reasoning – fostering innovation and consumption now in exchange for a larger economy later.
Implications for Thailand’s Crypto Economy
The new tax exemption is expected to turbocharge Thailand’s crypto market. By cutting the cost of trading by up to 15–35% (depending on one’s tax bracket), it should draw more Thai retail investors into crypto. Licensed exchanges anticipate higher trading volumes – an SEC-licensed fund manager said it “legitimizes and integrates digital assets into the global financial system,” potentially igniting Thailand’s crypto growth. Entrepreneurs predict that clearer rules and tax benefits will encourage more blockchain startups and token offerings to register in Thailand.
At a broader level, Thailand is betting on a two-pronged approach: incentivize regulated activity while cracking down on unregulated players. Alongside the tax break, regulators have barred illicit exchanges and outlined stricter AML requirements (FATF guidelines) to ensure only compliant activity benefits. This dual strategy – reward the compliant, punish the rogue – aims to capture offshore trading volume into the local economy. It also paves the way for complementary reforms (e.g. tourist crypto spending, recognized stablecoins like USDT/USDC, and potential VAT on digital asset services) that would further integrate crypto into Thailand’s finance sector.
In sum, the exemption functions as a powerful fiscal stimulus for Thailand’s digital economy. If foreign and domestic investors flock to Thai exchanges as intended, the government may recoup some foregone tax via other channels (consumption taxes, business growth, etc.). Observers will watch closely whether this approach yields the promised 1 billion baht boost and whether it indeed attracts startups and capital. For now, experts agree Thailand has taken one of Asia’s most pro-crypto tax positions. As one report noted, this five-year relief “turns Thailand into a blockchain hotspot” that could reshape the region’s crypto landscape.
Sources: Official Thai government and media reports, local news outlets (Workpoint Today, Bangkok Post), and crypto news sites (Cointelegraph, CryptoBriefing, Benzinga, etc.). (All quotations and data are from cited sources.)
