The move follows recent tax breaks and is part of Thailand’s broader effort to become a global crypto hub.
Thailand’s Securities and Exchange Commission (SEC) has launched a public consultation on proposed rules allowing exchanges — or individuals affiliated with them — to issue utility tokens.
Crypto exchanges would be asked to provide the identities of individuals belonging to a company that issues tokens under the proposal. This announcement is intended to assist the SEC in monitoring and investigating possible insider trading activity, a serious problem for the increasingly international digital asset market.
The action is a part of Thailand’s continued development of crypto regulation. The country has tried to promote and clamp down on the industry recently. Among these were plans announced in May to open the country to tourists to use cryptocurrencies, signalling a greater willingness to adopt digital assets.
But just days later, authorities closed off access to the crypto exchanges OKX and Bybit, citing unlicensed activities and money laundering concerns.
Thailand courts global crypto investors with bold 5-Year tax break
Just a few days ago, Thailand scrapped capital gains taxes on cryptocurrency sales for five years, in its boldest move yet to become a leading global hub for digital assets.
The Thai Cabinet approved the tax exemption, waiving personal income taxes on profits from crypto sales through licensed digital asset service providers. The policy will take effect from January 1, 2025, through December 31, 2029.
Deputy Finance Minister Julapun Amornvivat called the decision a pivotal step toward Thailand’s vision of becoming “one of the world’s financial hubs.” The government hopes the tax break will draw crypto firms and investors away from established centers like Singapore and Dubai, cementing Thailand’s place on the global digital finance map.
Thailand continues to position itself as “one of the first countries in the world to implement laws governing digital assets and related taxation,” according to Deputy Finance Minister Julapun Amornvivat.
The government expects the new tax exemption to deliver strong economic returns, with the Finance Ministry projecting that crypto assets could expand the Thai economy and boost tax revenues by at least 1 billion baht (approximately $30.7 million) over the medium term.
Industry analysts believe the potential upside may be even greater, citing Thailand’s status as home to Southeast Asia’s second-largest concentration of crypto holders.
“Thailand crypto HODLers are holding $180 billion, and clear regulations and tax reforms will help people to hold more crypto assets,” Jagdish Pandya, founder of Blockon Ventures and organizer of Thai Blockchain Week 2019.
Thailand’s crypto reforms aim to boost market confidence
The latest regulatory push also appears to be informed by past incidents. In 2022, Thailand faced its own insider trading scandal when the SEC accused the CTO of Bitkub — one of the country’s largest crypto exchanges — of using confidential information to profit from token sales ahead of a major deal.
Insider trading, defined as buying or selling securities based on non-public information, is widely considered illegal across financial markets. Enforcement in the crypto space has gained momentum globally. In 2021, OpenSea’s former Head of Product, Nate Chastain, was charged and later convicted for front-running NFT listings on the platform, receiving a three-month prison sentence. Similarly, three former Coinbase employees were indicted in 2022, with two serving time for leveraging non-public token listing details.
More recently, Binance suspended a staff member in March following an investigation into alleged insider trading, and blockchain analysts have flagged suspicious trading activity related to US President Donald Trump’s memecoin (TRUMP), prompting speculation of insider behavior.
Thailand’s SEC says the consultation period will give the public a chance to weigh in on how best to structure the issuance of utility tokens and prevent illicit practices in an increasingly complex market.
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