On October 09, 2024, Thailand’s Securities and Exchange Commission (SEC) initiated a proposal for investment opportunities for mutual and private funds, allowing them to invest in cryptocurrency products.
As per experts, the proposal came following cryptocurrencies surging in adoption and popularity worldwide. The keen interest in exploring digital assets and competing with other nations are a few primary reasons behind the move.
The proposal is open to public feedback; the move reflects the interest of developing nations in digital assets following the approval of Bitcoin ETFs by the Securities and Exchange Commission of the United States.
The Thai Revenue Department said in a press release dated February 06, 2024, “Income from digital asset trading in Thailand will no longer be subject to value‑added tax (VAT), effective from 1 January this year.”
A recent piece of information states that 7.25% of the world’s population holds crypto and it is expected to reach above 8% by 2025.
Could Thailand Become a Crypto Leader?
Thailand is ranked 10th among the nations with the fastest crypto-adoption. However, the nation hasn’t identified crypto as legal tender, and trading is not prohibited in the region.
Crypto trading has no restrictions in Thailand; one can easily trade Bitcoin, Ethereum, and other digital currencies in the region; it has learned a lesson from the collapse of Terra Luna and has a tight and favorable set of rules for the market.
Kulaya Tantitemit, director-general of Thailand’s Revenue Department, allegedly said, “The Ministry of Finance through the Revenue Department recognizes the importance of digital tokens for investment (Investment Token), which will be another tool for raising funds for business operators in the country.”
Yes, Thailand has great potential, and it could likely become a leader in the crypto market as its regulation and the interest of national residents have been favoring skyrocketing growth in the coming years.
13.02 million residents of Thailand hold cryptocurrencies, as per data by Statista(dot)com published in Q1, 2024. The number is expected to reach 16.63 million by 2025 and 17.67 million by 2028 end.
The back-to-back amendment in finance regulation, especially in digital assets, might help Thailand reach the top of the list among all crypto hubs.
It is worth noting that almost all crypto companies have been moving their workplace to nations with favorable rules.
It is speculated that VAT exemption and enlarging investment options for mutual and private funds, enabling them to invest in digital assets, will help Thailand gain traction as a leading asset manager and finance giant globally.
Crypto Market Price Update
In the past 78 hours, the cryptocurrency market capitalization has fallen significantly, reaching $2.12 trillion. However, the market’s trading volume was observed steadily falling 1.28% in the past 24 hours.
Until publishing, the fear and greed index was at 37, determining a fear factor in the market; at the same time, Bitcoin was trading at $60,728 after declining 2.65%, and market capitalization reached $1,202,869,078,424 declining 2.52%.
