Thailand is launching tax breaks for crypto traders starting January 1, 2025, but there are limitations and risks to consider.
Tax Breaks for Crypto Traders
Starting January 1, 2025, all capital gains from crypto transactions made through licensed platforms will be tax-free until the end of 2029. However, these tax breaks apply only when using local exchanges like Bitkub and Bitazza, regulated by the Thai SEC. Traders who use unlicensed international platforms like Bybit and OKX will not benefit from this advantage.
Security Concerns in Crypto Trading in Thailand
Despite the attractive tax policy, security remains a serious concern in the crypto space. Thailand faces a high rate of cybercrime and fraud exceeding global averages. Traders should not confuse tax breaks with security guarantees: the collapse or hacking of an exchange can lead to loss of funds. It is recommended to use hardware wallets and adhere to security practices.
Comparison with Vietnam in Crypto Regulation
While Thailand is introducing tax breaks, Vietnam is developing long-term regulatory measures. Work is underway to implement a Digital Technology Industry Law, which simplifies the recognition of cryptocurrencies under civil law. At the same time, questions arise regarding tax obligations for crypto transactions, which can be complex and unclear.
Thus, the tax breaks in Thailand create opportunities for traders but are accompanied by security risks and limitations. It is important to closely monitor regulatory changes and take measures to protect assets.
