Thailand Approves Tax Exemption on Crypto Profits for Five Years – Coincu

Thailand’s cabinet has sanctioned a five-year personal income tax exemption on profits from cryptocurrency sales, aiming to attract investment in the country’s digital asset market.

The Thai cabinet has approved a five-year tax exemption on cryptocurrency profits, reflecting a top-down effort to encourage economic innovation. This decision is supported by key figures, including former Prime Minister Thaksin Shinawatra, who promotes a regulatory sandbox for fintech. Shinawatra emphasized a balance between innovation and risk, particularly for the tourism sector. Nirun Fuwattananukul, CEO of Gulf Binance, also endorsed the sandbox model to maintain regulatory compliance while enabling crypto use cases.

Regional Policy Trends Reflect Thailand’s Crypto Initiatives

According to CoinMarketCap, as of June 17, 2025, Bitcoin (BTC) holds a market cap of $2.09 trillion, with a 24-hour trading volume of $56.45 billion, representing a 16.76% decrease. Prices have fluctuated, seeing a small drop of 3.32% over 24 hours and an increase of 24.11% over 60 days.

The tax exemption is set to lower investment barriers significantly, potentially drawing capital into Thai crypto markets. Bitcoin and Ethereum are among the affected assets, with trial projects anticipated for emerging stablecoins in Phuket’s sandbox program. This policy is expected to foster greater inflows into local exchanges.

“The sandbox will focus on the application of stablecoins, offering a balance between innovation and risk, particularly benefiting the tourism sector.” — Thaksin Shinawatra, Former Prime Minister of Thailand

Market Reactions and Future Outlook

Did you know? Thailand’s proactive tax policies mirror those of Portugal and Singapore, where similar incentives led to notable increases in local crypto trading volumes and adoption.

Market reactions show optimism, with potential boosts in retail and institutional participation. Key statements from Shinawatra have highlighted the role of stablecoins in tourism, and Fuwattananukul underscores controlled environments for cryptocurrencies. These steps indicate strong regulatory backing and potential positive impacts on market activities and participation.

Coincu’s research team suggests the policy may drive significant growth in Thailand’s digital asset sector. Historical parallels with other countries indicate a likely increase in DeFi projects and international collaborations. Such initiatives could also propel Thailand as a key player in Southeast Asia’s burgeoning crypto ecosystem, potentially driving both technological and economic advancements.