The Thai government has taken action to allow tax exemption to issue digital dynamic passwords to invest in order to benefit from the improvement of the digital currency industry.

Thailand's cabinet system has agreed to exempt companies that issue investment tokens from income tax and value-added tax, Reuters reported.

When announcing the news on March 7, government deputy spokesman Rajada Brevidirek said that in addition to other methods such as opening bonds, companies will also be able to replace the financing model by investing in dynamic passwords.

The government's investment in token issuance over the next two years will bring about 128 billion baht ($3.7 billion), Dhnadirek added. Thailand's potential hidden tax damage is about 35 billion baht ($1 million).

Thailand has already adopted a number of measures in response to password-related local tax standards, and it is better for the government to levy a 15% income tax on investors in early 2022. The government then cancelled the scheme, exempting password traders from levying 7 per cent VAT at authorized trading centres two months later.

Last year, local regulators have also been implementing a wider range of data encryption policies and regulations, with the Thai Securities and Exchange Commission (Securities And Exchange Commission) banning digital currency payments in March 2022.

The news comes as Thailand's Securities and Exchange Commission has once again formulated stricter password policies and regulations to protect investors. In January 2023, the financial regulator issued new rules on password escrow services to ensure that all password fund custodians have emergency plans to prevent unpredictable events.