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As the government tries to ensure everyone pays their fair share, KBank steps up its game with a $100 million fund to fuel innovation in AI and Web3. Meanwhile, Bitkub has joined forces with NDID to enhance its KYC process, while GAIALabs’ partnership with SO-Siamrajathanee is gearing up to transform the local outsourcing industry.
Thailand to Tax Overseas Crypto Income
Thailand's Revenue Department plans to tax the overseas income of all its residents, including earnings from crypto trading, as part of a wave of tax reforms set to take effect next year. The new policy will apply to any individual residing in the country for over 180 days. Legal experts have identified three main groups that will be affected by this policy: residents trading on foreign stock markets through offshore brokerages, cryptocurrency traders, and those exploiting the current tax system.
Previously, the country's Revenue Code taxed overseas income only if it was brought into the country within the same year it was earned. Some residents took advantage of this loophole by reporting their earnings in a different year to avoid taxes. The updated policy, effective January 1, 2024, closes this loophole by taxing deferred foreign income. The first tax forms under this new rule are expected to be filed in 2025.
While the government claims the policy aims to promote fairness and reduce income inequality, analysts speculate that the new tax rule will be used to fund a planned nationwide airdrop by Thailand's newly elected Prime Minister.
KBank Launches $100 Million Fund to Boost AI, Web3 Startups
Thailand's Kasikornbank, the country's second-biggest bank, has launched a $100 million investment fund focused on backing more than 30 international startups in the fields of consumer-focused AI, fintech, cybersecurity, NFTs, and blockchain infrastructure and scaling solutions. The Kasikorn X Venture Capital fund is on par with KBank’s quest to become a regional hub for innovative tech startups from the U.S., EU, Israel, and APAC.
Despite the prevailing bearish state of the crypto venture capital market, KBank continues to focus on digital innovation. The bank moved into decentralized finance in 2021 and partnered with Visa in 2018 to develop a blockchain-based cross-border payment solution. The new KXVC fund marks KBank's latest step to use technology for safer and more efficient financial services.
Global Partnerships Summit Tackles AI, Web3 Solutions for Outsourcing Industry
This year’s “Bridge to the Future” Global Partnerships Summit at Bangkok's Skyview Hotel marked a significant collaboration between outsourcing consultant SO-Siamrajathanee Plc. and Silicon Valley-based Incubator GAIALabs. The summit highlighted upcoming trends set to reshape Thailand’s outsourcing industry and featured keynote talks from leading AI and blockchain companies including Bitkub, Animoca Brands, and Networky.ai.
With this partnership, SO-Siamrajathanee aims to introduce next-generation technologies like Web3 and AI into the outsourcing sector, as part of its vision to shift from traditional outsourcing to tech-enabled solutions. Through digital transformation initiatives, the partnership aims to make customer systems more efficient, potentially saving companies around 20-30% in time and costs per year.
Bitkub, NDID Partner to Enhance KYC Services
Bitkub Exchange has partnered with the National Digital Identity Company Ltd. to enhance the security and convenience of its digital KYC services. The new two-step digital identity verification system streamlines the ID verification process for Thai citizens by allowing users to instantly verify their identity via the mobile application. The NDID integration not only streamlines the verification process but also allows customers with existing accounts at other service providers to easily transfer their verified information.
September 25-29: You won’t want to miss the Thailand Fintech Festival, the country’s most anticipated gathering for Web3, crypto, and fintech.
September 29: Join industry pioneers in crypto and Web3 for a night of inspiration and innovation, featuring direct one-on-one sessions with fellow founders and creative entrepreneurs at this speed networking event at The Standard Hotel, Bangkok.
October 3: Explore the future of DeFi at “Opening the World of Investment 101” with Cryptomind and KU Blockchain Society at the Faculty of Business Administration, Kasetsart University.
If you're around, please drop me a line! And feel free to reach out if you're in Thailand and have an exciting story or project you'd like to talk about.