Thailand has just abolished its 15% cryptocurrency tax

Thailand's revenue agency has agreed to eliminate the 15% bitcoin tax. This is good news for the crypto community.

Thailand Has Just Axed The 15% Tax On Crypto
Thailand | Image: Britannica

After heavy pushback from traders and crypto advocates in Thailand, the decision to eliminate taxes on crypto trading profits was taken.

If not for the 15% tax, crypto would continue to be exposed to some level of taxation. The high taxation on commerce and minting, on the other hand, will be scrapped.

According to crypto supporters, such a taxation regime might have stifled the country's cryptocurrency development.

In addition, the popularity of cryptocurrencies has exploded in Thailand, particularly among the younger generation. The removal of 15% taxes on mining and trading is expected to entice crypto investors back into the market.

Thailand's Government's Cryptocurrency Regulatory Efforts

Thailand's Security and Exchange Commission (SEC) recognized the cryptocurrency industry's immense potential while also acknowledging its risks, and has worked on a regulatory framework to protect users.

As a regulatory measure, the country's lawmakers have even prohibited certain meme currencies and NFTs.

Although Thailand seeks to protect and defend cryptocurrency investors, there is a lot of ambiguity surrounding the topic. It was unclear if the taxes would be levied on annual returns or at the point of sale.

Now that Thailand's politicians have chosen to abolish this taxation structure entirely, it's clear what crypto investors can expect.

Thailand's Tourism Authority contributed to this by stating that increasing cryptocurrency trading might actually help the country's economy, particularly after the outbreak.

The governor of TAT, Yuthasak Supasorn, stated that "those who have gotten affluent by hoarding digital currencies" may be looking to spend their assets.

Moreover, the Thai Central Bank further stated that new mechanisms to govern crypto activity on both an individual and organizational level are still being developed.

A consultation document will be published that will discuss the consensus and include a remark on the constraints of bitcoin activity.

Anti-Money Laundering and Investor Protection

Thailand's cryptocurrency regulatory agenda will revolve around the primary concerns of money laundering, taxation, and investor protection.

Overall, it is clear that cryptocurrencies will not be restricted and will be permitted to operate within a jurisdiction.