The order to afford the legal framework for cryptocurrencies and ICOs in Thailand went into effect on Monday. According to the report of Nation Multimedia, Cryptocurrency transactions are to revenue tax for both private firms and individual investors. It was announced at a press conference on Tuesday:
The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC). Individuals will still have to pay a 15 percent capital gains tax, also known as a withholding tax, on income earned in a transaction.
Director of Legal Affairs, Thailand’s Revenue Department
The VAT abdication for individual crypto traders is to “reduce their tax burden,” the publication noted, adding that the Revenue Department “would issue a regulation waiving the 7 percent VAT for individual investors.” Also, as the news outlet declared, “Under the new law, private companies launching ICOs have to pay corporate income tax on the funds they raise from the exercise.”
The Thai SEC will be the fundamental regulator of crypto assets. Three groups of crypto operators will be ordered: brokers, dealers, and ICO portals. They must gain licenses from the Finance Minister, according to the department’s spokesperson.
The Commission expects to issue regulations on cryptocurrencies and ICOs by the end of June after holding a public hearing, as claimed by the SEC chief.
The public hearing will take 2-3 weeks because investments in digital tokens are complicated and carry high risks. The new regulation aims to provide protection for general investors since only investors who have knowledge of ICO issuance or digital-asset transactions should be allowed to engaging in this kind of trading.
During this time, ICOs are banned in the country. The central bank has requested financial establishments in the country to persist from dealing with cryptocurrency transactions.