Thailand Crypto Tax Exemption and European Payment Trends

Just 0.2% of online businesses in the euro area accept cryptocurrency, a figure that highlights a sharp divide between the rapid growth of mobile payment methods and the stagnation of digital assets at the point of sale [1]. Meanwhile, Thailand is attempting to capture crypto capital by maintaining a 0% tax exemption on individual gains for transactions processed through locally licensed exchanges through 2029 [3].

European merchant adoption stalls

The European Central Bank (ECB) reported that crypto acceptance among euro area companies remains below 1% for physical locations, mirroring the low 0.2% rate for online merchants [1]. This lack of adoption contrasts with the broader payments landscape, where mobile payment acceptance nearly doubled to 68% in 2026 from 36% in 2024 [1]. Cash remains the dominant payment method, accepted by 92% of businesses, while card acceptance holds steady at 88% [1].

The ECB survey, which included 8,205 businesses across 21 countries, suggests that merchant behavior is driven primarily by consumer demand [1]. Because 26% of companies prioritize payment methods based on customer preference, the near-zero crypto acceptance rate indicates a lack of consumer interest in using digital assets for daily transactions [1]. The ECB noted that crypto’s relevance in the current retail environment is closer to that of bank checks, which saw acceptance fall to 27% from 36% in the latest survey [1].

Thailand’s digital asset hub strategy

Thailand is pursuing a different path, leveraging tax policy to attract crypto activity into regulated channels. Ministerial Regulation No. 399, which provides a 0% tax exemption on personal crypto gains, applies to trades conducted through platforms licensed by the Thai Securities and Exchange Commission [3]. This policy, which took effect in September 2025 with retroactive application to the start of that year, excludes non-trading income such as staking rewards, mining proceeds, and corporate profits [3].

To maintain oversight, the Thai government requires that crypto used for payments be converted into baht through programs like TouristDigiPay, ensuring merchants receive traditional currency rather than digital assets [3]. While the government expects the policy to generate at least 1 billion baht in tax revenue over time, it continues to restrict unlicensed foreign exchanges from operating within its borders [3].

What to watch

• Post-MiCA impact: The next ECB survey will serve as the first indicator of whether the European Union's Markets in Crypto-Assets (MiCA) regulation shifts merchant adoption trends [1].
• Regulatory deadlines: New Thai SEC rules regarding customer verification and monitoring are scheduled to take effect on August 16, 2026 [3].
• Infrastructure development: Monitor the progress of the Thai SEC’s consultation on domestic crypto ETFs and derivatives, which began in April 2026 [3].

The divergence between Thailand’s tax-incentivized integration and the euro area’s retail stagnation underscores the ongoing tension between crypto as a speculative asset and as a functional medium of exchange. Whether regulatory frameworks like MiCA or tax exemptions can bridge this gap remains the primary uncertainty for the sector.