BANGKOK –Â Thailand has introduced a broad package of rules to boost its position as a key digital asset centre in Southeast Asia. Rather than simply tightening control, the framework, led by the Securities and Exchange Commission (SEC) and backed by strong tax incentives, marks a practical shift. It is set to reshape how both local and overseas traders and investors operate. The goal is clear: support growth, protect investors, and align with global Anti-Money Laundering standards.
The Capital Gains Play: A Five-Year Tax Break
The standout change is a personal income tax exemption on capital gains from trading cryptocurrencies and digital tokens. The measure runs from the start of 2025 through the end of 2029. It is designed to draw capital and push trading into regulated Thai platforms.
What traders should know
- Zero capital gains tax: individuals, whether Thai or non-resident, will not pay personal income tax on profits from selling digital assets.
- Compliance is required: the tax break applies only when trades occur through exchanges, brokers, or dealers licensed by the Thai SEC. OTC trades or activity on unlicensed offshore platforms remain taxable under normal rules.
- Keep records: investors must keep clear and complete transaction records to support exemption claims, showing a move toward transparency.
This policy turns Thailand into one of the most tax-friendly markets for individual crypto traders in Asia. It removes previous progressive tax complexity and the 15% withholding tax on capital gains. The message is growth through lower friction, as long as activity stays inside the regulated perimeter.
Tighter Rules for Platforms: Local Presence and Strong Compliance
Tax relief is the carrot. The stick targets unlicensed foreign operators. Oversight by the SEC is stronger, and standards for conduct are higher.
Focus on foreign platforms.
Changes to the Digital Asset Business Law require any foreign platform that targets Thai users to secure a local SEC licence. Signs of targeting include:
- Using the Thai language on the platform or in services.
- Allowing transactions in Thai Baht.
- Using a Thai domain name, such as .th or .ไทย.
- Marketing or advertising aimed at Thai residents.
This approach protects local users from unregulated services. The Ministry of Digital Economy and Society (MDES) now has faster powers to block access to unlicensed platforms. It is a direct response to cybercrime and financial scams.
Higher operating standards
Licensed operators, both local firms and foreign platforms with Thai licences, must meet stricter rules:
- AML and KYC: alignment with global standards, including FATF and the EU’s MiCAR. Firms must use robust transaction monitoring and promptly suspend suspicious accounts.
- Investor suitability: Providers must assess client risk carefully and cannot market to investors who do not meet suitability tests.
- Asset restrictions: the SEC has barred trading of certain assets on local licensed exchanges, including meme tokens, fan tokens, and NFTs. The reason is a lack of clear substance or objective, which helps shield retail investors from highly speculative assets.
Adjusting the Investment Menu
The rulebook also refines how institutional and retail money can gain exposure to digital assets. The approach balances access with risk control.
Changes for institutions
Mutual funds and private funds have updated limits for crypto exposure. Funds for ultra-high net worth investors can invest in crypto ETFs without a set cap. Retail investor funds have a cautious 5 per cent cap on total NAV for crypto exposure through ETFs or foreign mutual funds. This supports diversification while keeping a safety buffer for the wider public.
Looser rules for real-estate backed tokens
To support tokenised assets, previous limits for retail investors in digital tokens backed by real estate or infrastructure income have been lifted. This reflects confidence in asset-backed security token offerings with clear underlying value.
Bottom line: A market growing up
Thailand’s new digital asset rules mark a clear shift. The country offers strong tax incentives to attract individual traders, and applies tight controls to the platforms they use. For traders and investors, the takeaway is simple: compliance drives growth.
Those who use licensed services will gain the most, protecting their capital while benefiting from one of the most attractive capital gains tax regimes for digital assets. Thailand is betting that a regulated and tax-efficient market will prove more stable and more profitable over time.
