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   1695

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.

SEC to Unveil New List of Probable TON investors

One investor in this list is a ex-member of the managing board of the Bitcoin Foundation and partner of Ribbit Capital Mayer Malka
27 January 2020   455

Some names of large investors and the names of investment companies that could take part in the $ 1.7 billion token sale of the Telegram blockchain project became known, CoinDesk reportes with reference to documents issued by the US Securities and Exchange Commission (SEC) in the framework of the current proceedings.

One such investor is a former member of the managing board of the Bitcoin Foundation and partner of Ribbit Capital, Mayer Malka. He during the testimony at the beginning of the month mentioned Telegram CEO Pavel Durov.

Answering a question about whether Telegram is known for investors who can take on the role of validators in the TON PoS blockchain, Durov said:

We didn't put together a separate list of the purchasers who we would assume have experience in validating other networks, although it was obvious that certain investors… such as, for example, Micky Malka that we have discussed earlier, might… have experience in these processes of validation or at least were closely affiliated with parties that had experience in such processes.

 

Pavel Durov

Telegram CEO

In addition, Telegram Vice President Ilya Perekopsky, in one of his reports, named David Jan, the founder of ABBYY, a linguistic solutions development company, among potential investors. According to the correspondence published by the SEC, Ian asked Perekopsky if he could get an allocation in the ICO if he contacted Telegram directly without intermediaries in January 2018. “100 percent,” replied Perekopsky.

Also, TON investors could become the American funds Kleiner Perkins, Fortress, Draper Dragon, Dragoneer, DRW Holdings and Redpoint. This follows from the testimony declarations affixed by the SEC to the recent petition. In eight declarations, TON investors explain what prompted them to purchase Gram tokens. Company names have been removed from all documents, but they have remained in the file names. Sources familiar with the situation confirm that they really could take part in the ICO.

Most of the witnesses interviewed by the SEC indicated that they were interested in the possibility of supporting the Telegram project in the ICO TON, while the messenger itself does not accept funding for its main business. The announced investment amounts are on average $ 5-10 million. At the same time, Kleiner Perkins was initially offered an allocation of $ 15 million, but the company managed to agree on a twice as large investment, it follows from the submitted documents.