The Thai Cabinet intends to vote for the introduction of a new tax on capital gains in the amount of 10% of the profits generated by investments in the cryptocurrency. Royal decree will give the opportunity to the Commission on securities and exchange Commission (SEC) to regulate the digital currency.
According to insider information, received from the Ministry of Finance, Department of revenue of Thailand has asked the Cabinet to vote for the amendment to the new tax code, which will include a proposed ten percent tax on profits from cryptocurrency trading.
As reported by The Bangkok, this tax will be included in the Royal decree, the task of which is to allow the SEC to comprehensively regulate all aspects of the stock market, including the ICO.
The new decree will classify bitcoin as a digital asset, not currency, and this means that the SEC will regulate all aspects of the virtual all coin. Of RAPI Sucharitakul (Rapee Sucharitakul), Secretary General of the SEC stated that the rules should set standards for disclosure of information about cryptocurrency trading, as well as control the launch of the ICO and received in their process income. He also referred to the protection of investors included in the new rules:
“The regulatory framework will cover cryptocurrencies in several areas, including the protection of investors and the use cases of digital assets as a vehicle for money laundering, tax evasion and Ponzi schemes”.
We will remind, earlier the Chairman of the Thai start-up accelerator Fintech Thai Association, Chatikavanij Korn (Korn Chatikavanij), last held the post of Minister of Finance, said that his organization supports this new plan.
Government officials said that similar laws adopted in the United States, caused positive changes because they allow to regulate the trade of cryptocurrency, and to use previously non-taxable source of income for the nation.
Analysts predict that Thailand traders can follow the example of their Chinese counterparts and try to invest outside the country to avoid tax, but as soon as the funds back into the country, they can be brought to justice in accordance with strict laws of Thailand in relation to money laundering.
Today, the Royal decree will be submitted for consideration of the Cabinet of Ministers. It is expected to be adopted by the end of the month.