Thailand’s Finance Ministry announced on February 7th that it would waive corporate income tax and value-added tax for firms conducting initial coin offerings (ICOs) for investment.

This is a major boost for cryptocurrency trading and adoption in Thailand, with the military-backed government predicting up to $3.7 billion in investment token offerings over the next two years.

However, there is still confusion regarding the country’s stance on cryptocurrencies, as the ruling regime has banned their use for payments and the central bank has called for a wider crackdown.

While the tax incentives will help companies access alternative methods of raising capital through token issuance, it is still unclear whether they will need to register with the financial regulator and comply with its rules.

There are also concerns that Thailand’s tightening of regulations may hinder its ability to become a regional crypto hub.

Despite this, research from crypto tax software company Recap last month suggests that Bangkok is emerging as a new crypto hub, with its largest crypto exchange, Bitkub, boasting around $29 million in daily volume, according to CoinGecko.

The move by Thailand’s Finance Ministry follows the government’s decision last year to scrap plans to charge 7% VAT on crypto trading for exchanges and retail investors.

However, there are still conflicting messages from the ruling elite regarding cryptocurrencies. While Thailand’s tourism ministry is trying to promote the country as crypto-friendly, the central bank has called for a wider crackdown, and the Thai SEC is preparing stricter rules for crypto trading and investment in line with global actions taken following the FTX collapse in November.