Published on August 15, 2024
By: Ertix Truepatch
Thailand is one of the world’s leaders in crypto adoption. By December 2023, data revealed that over 3 million Thais had accounts on cryptocurrency exchanges. Furthermore, the latest Crypto Adoption Index from Chainalysis ranked Thailand tenth, ahead of countries like China, Russia, the United Kingdom, Mexico, and Canada.
Southeast Asia is not only home to a growing population but also a booming blockchain environment. In Thailand, a supportive regulatory framework has been key. Unlike the stricter laws in countries like India and Nigeria, Thailand’s regulations are more welcoming to the crypto sector. This, along with a rapidly expanding Web3 sector and a vibrant ecosystem of exchanges like Bitkub and Orbix, makes Thailand a standout.
The Thai government has a pragmatic stance on crypto. Earlier this year, they introduced a tax exemption for crypto commercial transactions. According to Thailand’s Ministry of Finance, this initiative aims to position the country as a leading hub for digital assets. Consequently, those making payments with cryptocurrencies like Bitcoin or Ethereum no longer have to pay the 7% VAT.
In January, Thailand’s Securities and Exchange Commission (SEC) lifted restrictions on retail investors looking to buy tokens backed by real estate or infrastructure projects. A few months earlier, in September 2023, KBank, the country’s largest bank, acquired 97% of Satang, highlighting the Thai financial system’s growing interest in digital assets.
Still not convinced that Thailand is a great place for the crypto sector? The evidence shows government support and a real interest in educating the population about the digital economy. For instance, an initiative was launched to distribute 10,000 baht (about 276 US dollars) to all citizens over 16, using blockchain technology to promote digital literacy.
“The differences in regulations (referring to Southeast Asian countries) highlight both the challenges and opportunities on the path to adopting Web3. We hope that as leading countries in Southeast Asia advance in Web3 adoption, the region can foster greater synergy across Southeast Asia as a whole.
The region has witnessed substantial involvement from major Web2 companies in the burgeoning Web3 landscape, particularly in the realm of gaming. For many Web2 enterprises, gaming is the perfect getaway”.
–Nathan Kim, Marketing Director at Unopnd, in a Cointelegraph interview.
Likewise, Sanjay Popli, Cryptomind CEO, offered this statement in December 2023:
“I’m thrilled about the rapid growth of Thailand’s Web3 sector. With over 3 million cryptocurrency users and a 600% increase in recent years, it’s clear that our DeFi and NFT sectors are booming. Thailand is becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, and rich cultural diversity”.
In early June, Thailand’s SEC gave the green light to One Asset Management (ONEAM) to launch the country’s first Bitcoin exchange-traded fund (ETF). As reported by the Bangkok Post, the fund will be available only to institutional and high-net-worth investors. Additionally, ONEAM plans to invest the ETF in 11 global Bitcoin funds to ensure liquidity and maintain top security standards.
“Although the supply of Bitcoin is limited at 21 million, demand is rising as it gains popularity… We see high growth potential for Bitcoin. Investing in Bitcoin directly through different platforms comes with risks (referring to the benefits of investing in ETFs). In the past, these issues have included data loss or the theft of digital assets through online systems”.
–Pote Harinasuta, ONEAM CEO.
Thailand has become a leader in crypto adoption, thanks to its friendly regulatory environment and sustainable growth in the Web3 sector. As blockchain technology continues to develop, the country is attracting local investors and digital nomads from around the globe. While the future is uncertain, the tax exemption on crypto transactions and the recent approval of a Bitcoin ETF are encouraging signs. We’ll keep watching the situation and provide updates.
Our series on crypto adoption across various countries:
- Vietnam’s Crypto Revolution: Youth, Technology, and Opportunities.
- Understanding Venezuela’s Crypto Adoption: Key Insights and Developments.
- The Journey of Argentina Towards Crypto Adoption: Economy, Politics, and a Digital Future.
- Philippines’ Crypto Journey: Between Regulation and Financial Freedom.
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