Tax policies, interest rates align for domestic market

Thailand's digital asset market is poised to keep growing as favourable domestic tax policies align with expected cuts in global interest rates, while institutional adoption gains globally.

- NUNTAWUN POLKUAMDEE

Analysts welcomed the government’s recent move to exempt the capital gains tax on digital asset trading, saying it could help position Thailand as a Southeast Asian digital asset hub, especially as macroeconomic and geopolitical uncertainties evolve in the second half of 2025.

Woramet Chansen, investment adviser at Merkle Capital, said the US Federal Reserve kept interest rates steady during the first half of the year amid global geopolitical tensions and economic ambiguity.

“The Fed’s cautious stance signals a balancing act between inflation control and sustainable growth,” he said, adding that digital asset investors should monitor whether the global environment is leaning towards a risk-on or risk-off mode.

A potential blockade of the Strait of Hormuz, a critical chokepoint for global oil shipments, could trigger a spike in oil prices. That would likely accelerate inflation and force the Fed to delay any interest rate cuts.