The Thai finance ministry will waive corporate income tax and value-added tax for firms that conduct initial coin offerings, according to a government spokesperson cited by a Reuters report on Tuesday.
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Fast facts
- According to a government spokesperson cited in the report, companies will have access to alternative ways of raising capital through investment tokens and traditional methods like debentures.
- The Thai government estimates that there will be about US$3.65 billion of investment token offerings over the next two years, said the spokesperson, adding that the government would lose almost US$1 billion in tax revenue as a result of the policy change.
- Cryptocurrencies have gained popularity in Thailand recently, with the government also relaxing tax rules in crypto trading to promote industry development about a year ago.
- However, the Thai central bank has taken a more stringent approach to crypto, barring the use of digital assets as a means of payment due to potential threats to the country’s financial stability and the broader economy.
- The Thai Securities and Exchange Commission, which has been given a sole mandate to supervise the crypto industry, last year issued new rules prohibiting cryptocurrency companies from offering, lending and staking products or depository services.
- Following the news, sales volumes on Thailand’s largest crypto exchange Bitkub increased 53% over 24 hours to about US$32 million, according to data from CoinGecko.
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