Thailand’s Ministry of Finance has announced a significant initiative aimed at shaking up the crypto landscape by eliminating capital gains tax on cryptocurrencies for a five-year period. From January 1, 2025, to December 31, 2029, individuals trading cryptocurrencies such as Bitcoin on registered Thai platforms will be exempt from taxes on their profits. This strategic move aims to increase local trading activities while maintaining a careful watch over anti-money laundering regulations.
Incentives to Energize Crypto Trade
Deputy Finance Minister Julapun Amornvivat emphasized that this tax exemption is designed to enhance Thailand’s role in the global cryptocurrency market. The tax holiday applies to profits made through transactions with firms registered under the Thai SEC, potentially allowing traders to accrue significant savings as market values increase over the coming years.
BREAKING: Thailand has confirmed a five-year exemption for crypto capital gains, effective until 2029
— Crypto News Hub (@cryptonewshub) June 17, 2025
Only Licensed Traders Benefit
As per the latest announcements, this concession is limited to traders operating with legitimate, licensed cryptocurrency service providers in Thailand. Transactions conducted through unauthorized, overseas platforms will not qualify for the capital gains tax exemption, thereby encouraging compliance with Thailand’s KYC and AML standards.
Crackdown Promotes Compliance
Thailand has recently prohibited operations from five prominent exchanges—Bybit, OKX, CoinEx, XT.COM, and Bitrue—for functioning without the necessary local approval. This directive, effective June 28, underlines a strict regulatory environment. Conversely, exchanges like KuCoin have adjusted by launching a fully compliant Thai branch after securing the appropriate SEC licensing last week.
Opportunities for Tourists
The regulatory changes extend benefits to tourists as well. Starting in late May, visitors will have the option to use cryptocurrency to purchase items and services at designated locations, including hotels, restaurants, and retail outlets equipped with the proper payment infrastructure. This initiative aims to enrich tourist experiences and support the local economy.
Projections from the finance ministry indicate that these initiatives might catalyze growth in Thailand’s economy, potentially generating an additional 1 billion baht (approximately $31 million) in tax revenue over the next several years. The government hopes that an invigorated crypto environment will result in a surge of corporate registrations, increased trading fees, and enhanced spending by international visitors.
Simultaneously, Thailand is emphasizing strict adherence to regulatory compliance. Any exchange or firm wishing to operate within the country must register with the SEC and adopt AML measures as prescribed by the Financial Action Task Force. This strategic balance of incentives and stringent regulations illustrates Thailand’s commitment to building a thriving crypto ecosystem while thwarting illicit activities.
Image credits: Unsplash, Chart data from TradingView
