Author: Jagdish Kumar, India
When many countries are banning cryptocurrencies, Thailand has become the first country in Southeast Asia to propose a new cryptocurrency law.
Thai authorities have unveiled a new law that will cover digital assets that look after chosen tokens, including Bitcoin, Ethereum, Bitcoin cash, Ethereum classic, Litecoin, Ripple, and Stellar.
The law Digital Asset Business Decree defines cryptocurrencies as well as digital tokens as a medium of exchanging goods and rights to participate in an investment, or to receive specific goods.
Looking at the accelerated growth in the sector, the Thai government has also imposed 7% VAT on each trade, as well as 15% tax on profit that will be deducted automatically from individual account annually.
Apart from crypto coins and token, the government has also come up with a policy that will regulate initial coin offerings (ICOs) that will be similar to the existing equity and share market.
This comes after a statement by Thailand’s Securities and Exchange Commission director of the commission’s Fintech department Archari Suppiroj in June, in which he said that they are working to strike a balance between those who view cryptocurrencies as evil and those who use them for gambling.
Given that Thailand is competing against dozens of other places that aim to be crypto hubs, it’s unlikely these new laws will see it overtake Japan, South Korea or Taiwan.
If regulators make things too strict, people might go overseas and Thailand’s ability to offer any investor protection will evaporate. That is a common sentiment that regulators worldwide share.
However, this will bring all cryptocurrencies under the regulation that promotes legitimacy. And hopefully, the legitimacy will bring about widespread adoption.
Thailand’s regulations lay out rules for businesses that want to operate as an exchange, a broker, or a dealer.
With this, many Indian crypto exchanges might look to set up their base in Thailand, as regulations do not allow crypto trading after the ban by Reserve Bank of India (RBI).