Latest news with #ThaiSecuritiesandExchangeCommission
Arabian Post
5 days ago
- Business
- Arabian Post
Thailand Greenlights Five‑Year Tax Break on Crypto Gains
Thailand has authorised a five‑year exemption from capital gains tax for digital asset sales conducted through SEC‑licensed platforms, functioning from 1 January 2025 until 31 December 2029. The legislation aims to sharpen the country's advantage in the regional crypto landscape by lowering investor costs and enticing increased trading activity. Under the measure, individuals realising gains from digital assets via regulated exchanges will face zero capital gains tax throughout the five‑year window. Prior to this, profits were subject to personal income tax rates—reaching up to 35 per cent depending on annual earnings—alongside a 15 per cent withholding tax on gains from non‑licensed platforms. VAT on cryptocurrency trading had already been abolished as of 1 January 2024. Analysts believe the tax holiday is designed to reinforce Thailand's appeal in Southeast Asia's intensely competitive digital asset territory. With exchanges like Bitkub and Binance vying for market share, and tourists soon enabled to use crypto‑linked credit cards for local spending, Thai policymakers are signalling a strong commitment to bolster innovation while preserving investor protections. ADVERTISEMENT Officials from the Thai Securities and Exchange Commission stress that the exemption applies strictly to transactions performed on SEC‑approved exchanges. Revenues from crypto trades outside those platforms will not be covered and remain taxable. Licensed operators must continue observing related regulations: comprehensive transaction reporting, watch‑lists for suspicious activity, custody rules, and coordination with law‑enforcement as stipulated under the Digital Asset Business Law. Investor responses so far have been mixed. Market participants report that some will likely postpone realising gains until the exemption period begins. One Bangkok‑based trader remarked that the tax relief 'reduces effective cost by around 15 to 35 per cent depending on your income bracket,' reinforcing Thailand's status as Asia's most favourable crypto tax jurisdiction for the coming years. Critics caution that the measure may disproportionately benefit higher‑earning investors while diluting future tax revenue. Government officials argue the policy forms part of a larger strategy to boost capital market reform, as evidenced by parallel legislative updates—including measures enabling tourists to spend crypto, supporting retail access to digital government bond tokens, and enhanced SEC authority over foreign exchanges operating domestically. The incoming regulation also supplements Thailand's earlier decisions to exempt crypto trading from VAT from January 2024, amend withholding tax rules for licensed platforms, and permit offsetting of capital losses against gains. Expectations are rising for further alignment of digital asset rules with traditional financial regulations, part of a broader financial modernisation initiative led by the Ministry of Finance and Bank of Thailand. As the deadline for implementation approaches, licensed exchanges are working on upgrading systems to clearly segregate tax‑exempt transactions and produce compliant audit trails. The revenue department has indicated it will deploy random checks and compliance audits, with penalties ready for any lapses in record‑keeping or reporting. With the exemption set to begin next year, attention has swiftly shifted to whether Thailand will extend or widen the tax holiday when 2030 nears, and whether parallel measures such as tax incentives for crypto firms, custody providers, or investment token offerings will be introduced. The current package already ranks among the most incentive‑heavy digital asset tax regimes globally, likely reshaping investor allocations in the short to medium term.
The Star
14-05-2025
- Business
- The Star
Thailand launches "G-Token": A new digital route for government borrowing and public investment
BANGKOK: Thailand has unveiled its first government-backed digital token, dubbed "G-Token" or "Thailand Digital Token," in a bid to broaden public investment opportunities and create a fresh avenue for state fundraising. The initiative, approved by the government, will initially see tokens issued with a total value of approximately 5 billion baht. The Ministry of Finance anticipates the launch within the next one to two months. The G-Token represents a digital iteration of government debt, akin to traditional bonds but leveraging modern digital technology. Investors will be entitled to the repayment of their initial investment along with interest, in accordance with terms set out by the Ministry of Finance. This new financial instrument operates within the existing legal framework, primarily the Public Debt Management Act of 2005, which grants the Ministry of Finance the authority to borrow funds, and the Digital Asset Business Decree of 2018, which regulates the issuance and trading of digital tokens under the supervision of the Thai Securities and Exchange Commission (SEC). G-Tokens offer several distinct advantages over conventional government bonds. Being digital assets, they can be traded on specialised digital platforms, potentially offering easier access for smaller retail investors to participate in public debt. The digital format also promises greater trading flexibility through licensed digital asset exchanges, with ownership verified using digital systems. The Ministry of Finance has outlined that individuals, non-profit legal entities, and other designated legal entities will be eligible to purchase G-Tokens. Investments can be made through licensed digital asset exchanges, digital asset brokers, and other legally authorised entities. The investment process will involve opening an account with a SEC-approved provider, reviewing a prospectus detailing the token's specifics (issuance amount, maturity, interest rate, transfer conditions), placing a buy order, making payment, and receiving confirmation of the G-Token holdings in the investor's digital asset account. Holders of G-Tokens will be entitled to receive their principal back upon maturity, along with interest payments as specified by the Ministry of Finance. They will also have the right to trade and transfer their tokens through the designated digital asset platforms. The Ministry of Finance will determine the procedures for interest payments and the redemption of the G-Tokens, with payments expected to be made electronically to holders via their registered accounts, following the schedule outlined in the prospectus. Potential investors should be aware of certain considerations, including the potential for limited initial liquidity in the secondary market, the need for a basic understanding of digital asset technology and platforms, possible future regulatory changes, and the impact of interest rate fluctuations on the token's market value. G-Tokens differ from traditional government bonds primarily in their digital format and accessibility via digital asset exchanges. They may also feature lower minimum investment thresholds to attract retail investors and are expected to offer greater trading flexibility compared to traditional bonds, which are typically accessed through banks or authorised dealers and may have higher minimum investment requirements. Authorities have emphasised that G-Tokens are considered as secure as traditional government bonds due to the backing of the Thai government. While a deep understanding of digital assets isn't strictly necessary, users will need to be comfortable navigating the digital platforms used for trading. The Ministry of Finance will announce the official issuance schedule through its channels and the media, with licensed digital asset providers also expected to disseminate this information. Tax implications for G-Tokens will be detailed in the prospectus, generally aligning with the tax treatment of traditional government bonds, although specific details for G-Tokens will need to be monitored. In conclusion, G-Token represents a novel financial instrument for Thailand, integrating digital technology with government fundraising. It aims to democratise investment in government debt and foster the development of the nation's digital financial infrastructure. Potential investors are advised to monitor updates from the Ministry of Finance and the SEC in preparation for the upcoming launch. - The Nation/ANN
