Thailand is one of the crypto-friendly countries in the world. According to recent reports, the Southeast Asian country has also planned on regulating digital assets as a form of payment.
This is a major step considering the authorities in the country have been somewhat hesitant as they are aware of the volatility and unpredictability associated with the crypto space. However, despite the volatility, the government is also aware of the value and significance of digital assets.
Therefore, to dive deeper into the crypto space, the authorities in the country have now announced a relaxation regarding crypto tax burdens.
The prices of cryptocurrencies do fluctuate but their prominence is undeniable. After briefly seeing a price drop, the top two digital assets Bitcoin and Ethereum have seen a surge in their price over the last 24 hours. The price of BTC has increased around 8.43%, whereas ETH has seen a price increase of 7.91%.
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Reasons for Crypto Tax Relaxation in Thailand
A finance ministry cabinet meeting took place on Tuesday, 8th March 2022. The tax burdens on the crypto investors were discussed as a result of which, tax relief measures have been approved by the cabinet.
The tax relaxation will begin from April 2022 until the end of 2023. The tax relief measures also include the exemption of 7% value-added tax (VAT) on crypto trading carried out on regulated crypto exchanges.
This initiative has been taken to promote the crypto industry in the country. The Bank of Thailand issued Thai central bank digital currency (CBDC) to the interested parties. The transfers of the Thai CBDC will also be exempted from the VAT.
It has also been reported that the retail CBDC project of the Bank of Thailand will enter its pilot stages later this year.
Additionally, any annual losses seen by the crypto investors on their profits on crypto exchanges that have been approved by the government can now be compensated for tax calculations.
Another initiative taken by the government in Thailand is the discharge of 15% withholding tax plans on crypto transactions. This was announced after the government received backlash from the public earlier this year.
In short, cryptocurrencies are getting quite the attention and the customer base is increasing. Therefore, people who are interested in stepping into the crypto space should make sure they choose a suitable platform from the crypto exchange list and then begin investing.
What to Know as a Crypto Investor?
The price fluctuations seen for crypto assets are one of the aspects you need to be aware of if you are looking to invest in crypto.
Long-term crypto investors and traders are familiar with the volatility that is associated with digital assets, which is sometimes considered to be a healthy price correction. Even though the prices move up and down, the significance of cryptocurrencies cannot be denied.
Therefore, if you are interested in buying a digital asset make sure you:
- Keep an eye on the price movement of the digital currency you choose
- Choose one of the largest crypto exchanges that suits your needs the most
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