A new amendment on Thailand’s revenue code that will impose a 10-percent capital gains tax on digital currency investment profit is slated to be voted on by Thailand’s cabinet, as per instruction of the Thai Revenue Department.
According to the Bangkok Post, the amendment on Thailand’s Royal Decree will allow the SEC to oversee the comprehensive regulation of every aspect of the cryptocurrency industry, including Initial Coin Offerings (ICOs).
As cited in the newly amended decree, cryptocurrencies will be categorized as digital assets, as opposed to foreign currency, thereby authorizing SEC to take over regulatory measures to be mandated on digital coins.
The secretary-general of the SEC Rapee Sucharitakul stated that these regulations will establish a criterion encompassing information disclosure of digital currency trading, as well as supervise ICO launches along with its generated funds.
Furthermore, Sucharitakul also emphasized that:
“The regulatory framework will cover cryptocurrencies in several areas, including investor protections and how cryptocurrencies have sometimes been used as a medium for money-laundering, tax avoidance and Ponzi schemes”
The slated ruling follows the much-protracted consultation period to assess the digital currencies’ regulatory framework in Thailand.
In a recent interview with Thailand’s former finance minister and current chairman of the Thai Fintech Association Korn Chatikavanij, Korn has expressed concurrence with the Financial Ministry’s move, stating that:
“I agree with the Finance Ministry’s [view] of letting the SEC be the only organization governing digital assets, because it already oversees securities and has a profound understanding of digital assets.”
In previous reports, similar moves have been observed across the globe where legislation was proposed in an effort to regulate cryptocurrency trading, as well as accumulate state profit generated through tax implementation on cryptocurrencies.
Given Thailand’s stringent money laundering act, investors who may opt to engage in foreign crypto trading in order to evade Thailand’s taxation may potentially be censured if held liable.
Should Thailand’s Royal Decree amendment be enacted, it may not be far off before investors explore other territories for cryptocurrency trading.
The Royal Decree is expected to take effect by the end of March.