Thailand Removes VAT for Crypto Trading!

Thailand recently announced that it will not charge any VAT for digital currency trading. This announcement was made by the Ministry of Finance of Thailand. The country's finance ministry wants to establish their country as a new hub for this digital currency activity. And that is why the finance ministry is making this effort through a new tax reform.

Paupum Rojanaskull is currently serving as the Secretary of Finance Minister in this country. Such initiatives are being taken from his office. He highlighted the ministry's intention to promote the crypto market as a potential avenue for fundraising. So strategically they are trying to take such initiatives. This initiative will not only strengthen Thailand's economy. Rather, such initiatives will also increase their economic growth as a result. Such initiatives will hopefully encourage many crypto investors and help boost economic growth for the country.

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The Finance Ministry has introduced Value Added Tax (VAT) exemption effective from the beginning of the new year. And the last time of such activity is not specified. However, as a result of the new directives currently in place, the 7% VAT liability on income generated from crypto trading has been waived. Which is really a great initiative and hopefully the country will attract many investors.

An important point, however, is that such initiatives have been in place before but were previously only applicable to authorized crypto exchanges. However, a resurgence of such initiatives now includes brokers and dealers overseen by the Securities and Exchange Commission (SEC) of Thailand. But that is why the existing Securities and Exchange Act must be changed. The Securities and Exchange Act of 2019 should be amended to better align tokens. And plans are underway between the Ministry of Finance and the SEC to amend this law.

Kasikornbank Pcl, one of Thailand's largest banks, has recently begun building a digital-asset ecosystem. And this bank follows closely on its initiatives. Provides a unique way for companies to raise funds. But to be honest, even after such initiatives and offers of such benefits, there is also a kind of panic at work among Thai investors. Their panic centered around the crypto boom of 2017 and the subsequent market crash. However time has told and of course the authorities have become very aware of it. So it is expected that the new initiatives taken by Thailand authorities will attract investors and have a good impact on their economy.