The government of Thailand will reportedly release two new laws regarding Cryptocurrencies and Initial coin offerings. The minister of Finance, Apisak Tantivoraong revealed on Thursday that the new laws will regulate the cryptocurrency trading and taxation. The government will also regulations for ICOs according to the minister.
Thai deputy prime minister while speaking to journalists after a cabinet meeting confirmed news of the impending regulations. Local news outlet Thai Rath reported that deputy PM, Somkid Jatusripitak confirmed that two new laws are already being drafted.
The first law will be a guideline for Digital Asset Businesses is expected to address issues like Know-Your-Customer (KYC) requirements for agents, brokers, and dealers of cryptocurrencies.
On the other hand, the second law will focus on taxing cryptocurrency and ICO activities. This law will modify the country’s tax laws to stipulate guidelines for taxing cryptos. Penalties for violating these guidelines are also being mulled.
In the publication, Thai Rath gave an insight into the new laws and what it means for Thai crypto community. The law will empower Securities and Exchange Commission of Thailand (SEC) to implement the regulations. Cryptocurrency businesses would be mandated to provide identities of buyers and sellers as well as transaction details to the country’s Anti-Money Laundering (AML) office.
As regards taxation, the finance minister ordered the Tax Office —Thai Revenue Department—to collect 7 percent VAT on cryptocurrencies and 15 percent withholding tax for ICOs. Taxpayers can combine their cryptocurrency tax liabilities with their annual income. Companies that already issued an ICO will be given 6 months to comply with the new directives, the newspaper reports.
Bank of Thailand still prohibits cryptocurrency activities
As the Thai government mulls over the new laws, the central bank, BOT has not made any moves to review its stance on cryptocurrency transactions in the country. The February ban on key cryptocurrency activities will likely remain in force even after the new laws are approved. Thai banks including Bangkok bank and Krungthai bank have closed accounts of cryptocurrency businesses.