• Thailand is offering a $1 billion tax break for companies issuing investment tokens.
• The government will waive corporation and sales taxes to incentivize firms to issue digital tokens.
• This follows recent regulations from the Thai financial regulator, and more recently issued crypto custody rules.
Thailand Offers $1B Tax Break for Firms Issuing Investment Tokens
Thailand has announced a new policy that will provide a tax break for companies issuing digital tokens for investment, according to a report from Reuters. The country will waive corporation and sales taxes for those firms, which could cost the government 35 billion baht ($1 billion).
Stricter Crypto Regulations
In September, Thailand’s financial regulator took steps to establish stricter crypto advertising rules, banning crypto firms from offering staking and lending services. It has also issued regulations for crypto custody. Its central bank has been involved in international projects to test central bank digital currencies (CBDCs).
Tax Incentive Aims To Encourage Crypto Adoption
The new tax incentive appears designed to encourage more companies to issue digital tokens as an alternative way of raising capital. By waiving the corporation and value-added taxes, the Thai government hopes that this will open up opportunities for more businesses to explore the potential of blockchain technology and cryptocurrencies.
Crypto Regulations Differ Across Asia
Regulations surrounding cryptocurrencies vary across Asia depending on each country’s outlook on it. While Thailand is taking steps towards encouraging its use through tax incentives, other countries such as India have taken steps towards prohibiting certain cryptocurrency activities in their jurisdiction.
Overall, it’s clear that Asian countries are starting to take notice of cryptocurrencies — with some embracing it while others remain cautious about its application within their own borders. With Thailand now offering tax breaks for token issuers, it may be only a matter of time before other countries follow suit in order to keep up with the ever-evolving landscape of cryptocurrency regulation worldwide.