Almost every day seems to bring positive news for the crypto enthusiast.

Throughout the world, regulators are finally warming up to the potential of crypto trading. East Asian consumers have shown particular interest in crypto.

Compared to other world regions, East Asia features a significant amount of economic innovation.

Thailand is one of the Asian nations seeing the biggest growth in crypto trading. With the second largest economy in Southeast Asia, Thailand has plenty of capital to devote to crypto investment and development.

How the Thai Establishment is Engaging With Cryptocurrency

Bitkub, Thailand’s premiere crypto exchange, has seen remarkable buy-in from the nation’s financial establishment. In fact, the Siam Commercial Bank (SCB) recently acquired a major stake in Bitkub.

Since the SCB is Thailand’s largest financial institution, this acquisition speaks volume about crypto’s growing respectability.

Thailand’s Scuttled Crypto Tax

Thailand has cancelled plans to implement a 15 percent tax on all crypto-related capital gains. The proposed tax was slated to affect both crypto trading and crypto mining.

Unsurprisingly, this tax plan inspired immediate outcry from Thailand’s crypto industry. Critics argued that this plan would cripple Thailand’s nascent crypto exchange sector.

The Ups and Downs of Cryptocurrency in Thailand

Cryptocurrency became massively popular in Thailand after the onset of the global coronavirus pandemic.

As Thailand’s crucial tourism revenues dried up, locals started looking for innovative new ways to make ends meet.

Filling Thailand’s economic gap, crypto trading proved to be especially popular with Thailand’s younger citizens. Though not totally opposed to crypto, Thai lawmakers have been keen to regulate this volatile economic sector.

The nation has already banned the sale of NFTs and meme coins. Facing public outrage, Thailand has cancelled implementation of its 15 percent crypto tax.

The tax will be implemented in 2023 at a lower rate. This readily demonstrates how the Thai government has become more responsive to the needs and desires of its constituents.

Crypto in the Broader East Asian Context

For a variety of reasons, East Asian populations have proven uniquely apt to adopt crypto and digital payments in general. Many East Asians are wary of government currency manipulation.

In addition, consumers in this region have long been comfortable operating in a cross-border sphere. Whether physically leaving their nations or shopping online, locals are quite used to international transactions. By using cryptocurrency, one can bypass using expensive currency exchange services.

Throughout the Pacific Rim, governments are reacting to the rise of crypto in very different ways. China’s government continues to enforce its long-standing ban on crypto.

Just like Thailand, Korea postponed a controversial crypto tax plan. Though the future is never certain, it is likely that Thailand will continue to foster a friendly environment for crypto companies.

Even though Thai regulators remain cautious, the Thai establishment is clearly coming to terms with crypto. At this point, crypto is clearly here to stay. Instead of trying to hold back the tide, thoughtful governments are trying to integrate crypto into their economic systems.