The Thai finance ministry will waive corporate income tax and value-added tax for firms that conduct initial coin offerings, according to a government spokesperson cited by a Reuters report on Tuesday. 



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According to a government spokesperson cited in the report, companies will have access to alternative ways of raising capital through investment tokens and traditional methods like debentures.



The Thai government estimates that there will be about US$3.65 billion of investment token offerings over the next two years, said the spokesperson, adding that the government would lose almost US$1 billion in tax revenue as a result of the policy change.



Cryptocurrencies have gained popularity in Thailand recently, with the government also relaxing tax rules in crypto trading to promote industry development about a year ago. 



However, the Thai central bank has taken a more stringent approach to crypto, barring the use of digital assets as a means of payment due to potential threats to the country’s financial stability and the broader economy. 



The Thai Securities and Exchange Commission , which has been given a sole mandate to supervise the crypto industry, last year issued new rules prohibiting cryptocurrency companies from offering, lending and staking products or depository services. 



Following the news, sales volumes on Thailand’s largest crypto exchange Bitkub increased 53% over 24 hours to about US$32 million, according to data from CoinGecko. 




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