Thailand's new Royal Decree regulating digital asset transactions was passed on March 27, giving the ICOs an extra 30 days to inform the SEC about their plans, while charging withholding tax and all digital transactions 7% VAT added.
Thai crypto-traders face 22% tax penalty
As reported in NewsBTC two weeks ago, the Thai Revenue Department had submitted an application for a proposed capital gains tax of 10% on profits from the investment in cryptocurrencies in the Cabinet's approval
The tax was part of a royal decree that should give the SEC full regulatory powers over all aspects of the cryptocurrency markets, including the proposed ICOs. On Tuesday, a new draft of the decree was adopted by the Cabinet, which contained some surprises for the day-trader, as reported by the Bangkok Post.
First, there is a general trivial redefinition of digital assets by the ministry, since only cryptocurrencies and digital tokens omit the aforementioned electronic data.
Then comes the hit, the new draft includes a 7% VAT premium in addition to a 1
Not only the 7% VAT is a new issue from the previous draft of two weeks ago, but the capital The profit tax has risen by 5% from 10 to 15 during this time and has an almost unbearable amount of instant percentage profit added for each tracker win loss formula. This makes the cryptocurrency trade in Thailand almost impossible, as its military junta continues to be stubborn.
ICOs receive 30 days
In addition to double tax success, the new draft of the decree extends the period of issuers of initial coin offerings (ICOs) to inform the SEC of their plans of 60 to 90 days.
The change was made after market participants complained that 60 days had not been a reasonable time, said Finance Minister Apisak Tantivorawong.
Concern over the volatility of ICO fundraising. It was noted that naive investors could be exploited by unscrupulous bad actors. Some cited the Asian financial crisis in 1997 as an example of what can happen when investors jump into a trend without doing their due diligence.
Mr. Tantivorawong said:
"The decree will create a broad regulatory framework that will allow the SEC to legislate and create rules that both protect retail investors and monitor major players."
Technology experts have encouraged the government to encourage ICOs as a way to ensure that start-ups see Thailand as a place to do business. However, Finance Minister Tantivorawong has stated that any company with a solid plan can get funding without resorting to crowdsourcing. The law is expected to come into force this month.