Thailand Extends 5-Year Tax Exemption on Crypto Gains, Bans Unlicensed Platforms

In 2025, Thailand made significant strides in its cryptocurrency regulations, aiming to enhance customer protection, transparency, innovation, taxation, and market revenue. The Thai government implemented new policies to foster growth in the digital asset space, with aspirations to become a prominent player in digital finance and cryptocurrency.

One of the key developments was the extension of a five-year tax exemption on capital gains from crypto trading made through licensed digital asset platforms. This exemption, effective from January 1, 2025, to December 31, 2029, aimed to increase investment, stimulate economic activity, and drive long-term growth. Additionally, the government banned five unlicensed crypto platforms—Bybit, 1000X, CoinEx, OKX, and XT.COM—due to their illegal operations. The Securities and Exchange Commission (SEC) issued a public advisory urging users to withdraw or transfer digital assets from these platforms before June 29, 2025.

Thailand also announced plans to issue approximately 5 billion baht ($150 million) worth of digital asset tokens, known as “G Tokens,” as part of public debt. These tokens were intended to raise funds from the public under the current budget borrowing plan. Furthermore, the government implemented two Royal Decrees to regulate the digital asset space. The first decree required foreign crypto platforms targeting Thai users to obtain a license from the SEC and introduced new rules to tackle foreign Peer-to-Peer (P2P) crypto services to combat online financial crime. The second decree expanded the powers of the Ministry of Digital Economy and Society (MDES), allowing it to block access to any unlicensed digital platforms without court approval.

The Thai government's recent laws and regulations indicate a strong commitment to enhancing innovation through digital assets. The country aims to achieve growth in adoption, investor protection, economic growth, and global competition. With a crypto-friendly tax regime, Thailand is promoting digital assets for daily use and increasing the adoption rate within the regulatory framework. The government also has strict policies for anti-money laundering (AML) and combat-terrorism in finance (CFT) for all virtual asset service providers (VASPs).

In terms of taxation, Thailand introduced a five-year exemption on capital gains tax from January 1, 2025, to December 31, 2029. However, personal income from crypto, such as mining, airdrops, or receiving crypto as payment, remains subject to personal income tax (PIT). Taxable events include trading and swapping digital assets, crypto mining, airdrops, remuneration, receiving crypto as payment or gifts, and return on investments. Tax-free events include crypto donations, inheritance, income from crypto derivatives, unrealized gains on crypto while holding, and loss or theft of crypto.

Under the Royal Decree on the Operation of Digital Asset Businesses (No. 2), foreign crypto platforms must obtain a license from the SEC if they target Thai users. Local virtual asset service providers (VASPs) are also required to obtain an SEC license. The process involves incorporating the company in Thailand, depositing the legally required share capital, and complying with know your customer (KYC), anti-money laundering (AML), and counter-terrorism in finance (CFT) obligations. After completing these stages, companies must register with the Ministry of Finance, a process that officially takes 150 days.

Thailand's crypto adoption rate is projected to be 11.60% in 2025, with an anticipated increase to 11.79% by 2026. By next year, the number of crypto users in Thailand is expected to reach 8.43 million. Projected revenue in crypto is expected to reach US$793.6 million in 2025, with an annual growth of 1.45%, resulting in US$805.1 million by 2026.

Thailand is one of the largest markets for cryptocurrency, with a significant portion of its citizens holding cryptocurrencies. The government and crypto agencies have made substantial efforts to ensure investor protection and safety measures for crypto users, making it a popular crypto hub. With new crypto-friendly laws and rapid development, Thailand is poised to become one of the major global crypto leaders.