Thailand’s revenue agency has opted to cut the 15% crypto tax. This is good news for the cryptocurrency market, which is growing.
Policymakers made this move to eliminate taxes on crypto trading profits in the face of intense criticism from Thai traders and crypto advocates.
On the one hand, cryptocurrency would continue to be liable for some taxes, if not the complete 15%. However, the government will scrap the high taxation on transactions and minting. According to cryptocurrency backers, such a taxation system might have stifled the country’s cryptocurrency development.
The popularity of cryptocurrencies in Thailand skyrocketed, particularly among the younger generation. Removing the 15% tax on mining and trading is expected to entice crypto investors back into the market.
Regulatory Measures for Cryptocurrency By Thailand Government
Thailand’s Security and Exchange Commission (SEC) recognized the cryptocurrency industry’s promising future while acknowledging its risks. As a result, it has established a regulatory guideline to protect users. As a regulatory measure, the country’s legislators have even prohibited some meme currencies and NFTs.
While Thailand seeks to protect and defend cryptocurrency investors, there is a lot of ambiguity surrounding the topic. It was unclear whether the government would levy the taxes on annual returns or at the source itself.
Now that Thailand’s legislators have chosen to abolish this taxation structure entirely, it’s clear what crypto investors can expect.
Thailand’s Tourism Authority contributed to this by stating that increasing cryptocurrency trading might help the country’s economy, particularly after the outbreak.
The governor of TAT, Yuthasak Supasorn, noted that people who became financially secure by holding cryptocurrencies might be hoping to spend their holdings. If they could utilize their bitcoins without having to exchange them or pay government fees, that would be convenient for them, he said.
As of this writing, the Thai Central Bank is still working on new ways to regulate cryptocurrency activity on both the institutional and individual levels. There will be a published consultation document that will discuss the consensus and include a comment on the constraints of cryptocurrency activity.
Anti-Money Laundering and Investor Protection
Thailand’s cryptocurrency regulatory plan will revolve around the primary concerns of money laundering, taxation, and the protection of investors. Ultimately, it is clear that cryptocurrencies will not be restricted from operating within a jurisdiction.
Thailand’s Securities and Exchange Commission (SEC) must approve and regulate the use of cryptocurrency. SEC mandates that the issuer supply data and market their tokens using token platforms registered under a digital asset decree.
Thailand has taken a cautious approach to cryptocurrency in the past, including a ban on the trading platform Binance. Therefore, it is encouraging to see the Thai government embrace cryptocurrency to help the asset class expand.
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