Two New Crypto Laws For Thailand
Regulators in Thailand have reportedly agreed to enact two new laws regarding cryptocurrencies and initial coin offerings. These laws will, apparently, regulate the business, selling and buying of cryptocurrency.
Thailand’s Minister of Finance, Mr Apisak Tantivorawong, said on Thursday that the Thai government is set to announce two new laws that will regulate the cryptocurrency market and ICOs by then end of the month. The deputy Prime Minister too made a similar statement after a cabinet meeting, reported local news.
The first law is the Act on Digital Asset Businesses. This law makes it compulsory for all cryptocurrency operators like agents, dealer, broker, news outlets etc, to register their businesses and conduct a KYC. The act also has provisions and remedies for possible violations and modes of reprimanding violators.
The second law is the amendment of the Thai Revenue Code to include cryptocurrency as an asset. So that cryptocurrency and the money made in and through ICOs is taxable under the law.
Regulating Crypto Business
With the enactment of the new laws, it will become necessary for all cryptocurrency and ICO businesses to declare their assets. Which means they will have to show the sources of their crypto investment funds in order to prevent money laundering. The companies will also be obligated to provide names of buyers and sellers to the Anti-Money-Laundering Office.
The new laws also, potentially, put the Securities and Exchange Commission of Thailand in-charge of the cryptocurrency market in the country. The Thailand Revenue Department has also been ordered to collect 7% VAT and 15% withholding tax and has declared that taxpayers can now combine their cryptocurrency tax liabilities to their annual income.
This move to regulate the Thai cryptocurrency market legitimises it on an entirely different level, however, the Bank of Thailand’s refusal to change its position on the matter is the only dampener on the move. The bank stands firm on its position that even after the laws are passed, BoT will not deal with cryptocurrencies and any accounts that are linked to them will be subject to immediate suspension. And a lot of banks are following suit with the Bank of Thailand like the Bank of Bangkok. But the move is definitely welcome and comes as a giant reprieve to the crypto-users of the country.