Thailand Approves 5-Year Capital Gains Tax Exemption on Licensed Crypto Trading

Thailand has taken a significant step towards promoting its digital economy by approving a five-year capital gains tax exemption on licensed crypto trading. The Cabinet, on 17 June, endorsed a new tax rule that waives personal income tax on capital gains from the sale of digital assets through licensed operators. This exemption will be effective from January 1, 2025, to December 31, 2029.

Deputy Finance Minister Julapun Amornvivat highlighted that Thailand is among the first countries to legislate crypto taxation and is now adjusting its tax structure to promote token-based fundraising and regulated crypto trading. The exemption applies only to transactions conducted through licensed digital asset operators, including exchanges, brokers, and dealers approved under Thailand’s Emergency Decree on Digital Asset Businesses. This move aims to incentivize trading within the regulated ecosystem under the supervision of the Thai Securities and Exchange Commission (SEC), targeting both growth and innovation.

Officials believe this measure will not only encourage domestic crypto activity but also attract foreign investment. The Ministry of Finance estimates that the policy could generate over 1 billion baht, or roughly $30.7 million, in additional tax revenue over the medium term. The tax relief is also intended to reinforce Thailand’s commitment to regulatory transparency and financial compliance. All qualifying platforms must meet strict Anti-Money Laundering and Know Your Customer standards, in line with guidelines from the Financial Action Task Force.

The timing of the tax exemption serves as an implicit warning to unlicensed platforms, signaling that only registered entities will benefit from the country’s crypto-friendly policies. Just last month, regulators cracked down on Bybit, OKX, and other non-compliant offshore exchanges. The SEC has instructed the Ministry of Digital Economy and Society to enforce access restrictions and has advised investors to withdraw funds ahead of the cutoff. This crackdown is part of a broader effort to eliminate platforms operating outside Thai jurisdiction and to steer users toward SEC-regulated providers. Officials said the campaign would help prevent financial crimes and protect investor funds.

Amidst this backdrop, Thailand has continued to explore progressive crypto initiatives to promote adoption within its borders. In May, Finance Minister Pichai Chunhavajira announced a proposal to enable tourists to spend crypto via credit card-linked wallets, with merchants receiving baht as usual. The system is being reviewed for a potential pilot. Thailand also plans to unify its fragmented capital markets laws and has introduced government-issued investment tokens known as “G-Tokens,” which would allow retail investors to buy government bonds in smaller units and are intended to improve access and raise the profile of Thai sovereign debt.

This tax exemption is a strategic move by the Thai government to position the country as a pioneer in comprehensive digital asset regulations and tax frameworks. By exempting capital gains tax on digital asset transactions, the government aims to create a more favorable environment for cryptocurrency trading and investment. This move is expected to increase medium-term tax revenue and may pave the way for the introduction of new taxation forms, including a Value-Added Tax (VAT). The decision to exempt capital gains tax on digital asset transactions is a significant step towards fostering a more robust digital economy in Thailand. By providing tax incentives for digital asset transactions, the government aims to create a conducive environment for innovation and investment in the cryptocurrency sector. This move is expected to have a positive impact on the country's economic growth and its position as a global digital asset hub.