Thailand approves draft decree on cryptocurrencies
Thailand approves draft decree on cryptocurrencies. Thailand’s cabinet approved a draft decree to regulate cryptocurrency and initial coin offerings (ICOs). The definition of digital assets has been changed from the previous draft, but the tax structure still remains. All crypto businesses are required to obtain licensing and reporting information from the money laundering office.
Royal Decree approving regulations for cryptocurrencies
According to local media, Thailand’s cabinet has a law enforcement agency to regulate cryptocurrencies and ICOs. draft royal decree approved. Finance Minister Mr. Apisak Tantivorawong revealed that no major changes were made in the draft the ministry proposed earlier this month.
The only significant change in the new draft decree is the definition of digital assets
As reported by the Bangkok Post, The only significant change is the identification of digital assets.. This now removes other assets such as cryptocurrencies and digital tokens, electronic data as stated in the previous draft. The effective date of the decree will be published in the Royal Gazette.
“The new law is not to prohibit transactions related to cryptocurrencies, ICOs and other digital assets, but to protect investors.”
Bangkok Post, Mr. Apisak explained Tantivorawong:
New laws are needed to comprehensively regulate cryptocurrencies and digital tokens for the prevention of money laundering, tax evasion and crime. The new law is to protect investors, not prohibit transactions related to cryptocurrencies, ICOs and other digital assets.
Thailand wants to protect retail investors with crypto-related regulations
Thailand With regulations regarding cryptocurrencies, retail investors want to protect. Mr. Apisak Tantivorawong stated that his ministry and the Thailand Securities and Exchange Commission (SEC) are working on new regulations so that all digital asset transactions, including digital asset exchanges, brokers and dealers, are subject to relevant laws.
< The article in the
Thai Rath newspaper includes the following explanations:
All digital currency businesses, such as investors or digital currency exchanges, are required to obtain a license from the SEC or foreign currency seller. They should report the source of assets and transaction amounts to the Anti-Money Laundering Agency (AML).. The government wants to protect retail investors.
In the new draft, the taxes to be applied to cryptocurrency investors remain unchanged
Deputy Ministry of Finance Wisut Srisuphan said that the taxes to be applied to cryptocurrency investors proposed in the previous draft He confirmed that it remained unchanged and added the following:
Investors engaged in digital asset-related transactions, when the new law comes into force, will receive a 15% value-added tax (VAT), a 15% withholding tax in return, and a tax on these investments. They will be responsible for the revenues generated.. Retail investors will be exempt from paying VAT if they invest in digital assets through the exchange.
Non-capital gainers will pay VAT only
Wisut Srisuphan also stated that non-capital gainers will only pay VAT. Commenting on the new tax law, Korn Chatikavanij, head of the Thai Fintech Association, said:. Investments may shift to Singapore, even if costs are higher for ICO issuers relative to the country. Singapore is a good position to raise funds from ICOs and is exempt from capital gains tax. Therefore, the market environment favors the investment of ICOs that offer good opportunities.
Investors will be consulted before the bill is enacted
The draft decree, before the bill enters into force, It will be given to ICO issuers for 90 days to get the opinions of the investors. Mr. Apisak Tantivorawong stated that this period has been extended by 60 days as market participants stated that 60 days is not a reasonable period of time.. Meanwhile, listed Jay Mart Plc is reported to have delayed the sale of its JDA token to TDAX from July 2 to May 2, awaiting the company’s royal decision to be announced.
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