Thailand refuses 7% VAT for Individual Crypto Investors

Regulating digital currencies and ICO began: Thailand’s Revenue Department has claimed that it will refuse the 7% tax for individual cryptocurrency investors 
17 May 2018   550

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.
Saroch Thongpracum
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.
Rapee Sucharitakul
Secretary-General, SEC 

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.

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SEC to Slap ICO Founder With $30K Fine

Additionally, David Laurance, founder of Tomahawk Exploration LLC got 2 lifetime bans
15 August 2018   118

The US Securities and Exchange Commission (SEC) on Tuesday reported that it has issued two new bans directed against David Laurence, the founder of Tomahawk Exploration LLC. Tomahawk allegedly stands behind fraudulent ICO, writes CoinDesk.

Laurence, according to the SEC, raised funds through the sale of Tomahawkcoin tokens, in the process of using misleading advertising materials and fraudulent statements that it is a tenant of drilling sites.

Moreover, the sale of Tomahawkcoin tokens, according to the SEC, was accompanied by a false promise that "the holders of tokens will be able to exchange Tomahawkcoin for shares and receive a potential profit from oil production and secondary tokens trading."

According to the SEC, Lawrence neither acknowledged nor denied the charges, but he and his company agreed to these bans, as well as a fine of $ 30,000.

...Tomahawk issued tokens as part of the Bounty Program to generate interest in the ICO, which benefited Tomahawk. Distribution of tokens that are securities in exchange for promotional services to advance the issuer's economic objectives or create a public market for the securities constitute sales for purposes of Section 5 of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.


The first prohibition of the SEC is a ban on the director's work in public companies, and the second does not allow Lawrence to own and trade in so-called "penny" shares. Both prohibitions, according to the announcement of the SEC, are lifelong.