The Thailand Finance Ministry has announced that it will waive corporate income tax and value-added tax for companies that conduct Initial Coin Offerings (ICOs) for investment. This is in an effort to encourage alternative methods of raising capital and is estimated to bring in around $3.7 billion worth of investment token offerings over the next two years. However, this will also result in a tax loss of around $1 billion.
The Thai government has been sending mixed messages regarding cryptocurrency trading and adoption, with the tourism ministry promoting the country as crypto-friendly while the central bank has advocated for a wider crackdown. The Thai SEC is currently preparing stricter rules for crypto trading and investment, and it is likely that companies issuing tokens eligible for the new tax breaks will have to register with the financial regulator and comply with its rules.
According to research, Bangkok is emerging as a new crypto hub, but without the clarity that Singapore and Hong Kong have, it may be difficult to compete. Industry analysts have suggested that a tightening of regulations in Thailand may hinder its ability to become a regional crypto hub. Thailand’s largest crypto exchange, Bitkub, has around $29 million in current daily volume, according to CoinGecko.
Unfortunately, crypto markets are on the retreat once again, with total capitalization declining by 1% on the day to $1.06 trillion. BTC had lost 1.4%, falling out of its four-day channel to trade at $22,000. Meanwhile, Ethereum was holding steady at $1,564, having lost just half a percent on the day.