As reported by the media of Thailand, the Royal decree for the regulation of cryptocurrencies and the ICO were approved by the Thai Cabinet. The law is not intended to prohibit cryptocurrencies and ICO, and is aimed at comprehensive regulation of cryptocurrencies to prevent money laundering, tax evasion, and protecting investors.
According to the statements of the Minister of Finance of Thailand Apisak Tantivorawong (Apisak Tantivorawong), the only significant change in the project that the Ministry suggested at the beginning of this month, is the most accurate definition of a digital asset that now includes only «cryptocurrency and digital tokens, excluding other assets such as electronic data».
In addition the Minister noted that today the Ministry of Finance and the Commission on securities and exchange Commission of Thailand is working on laws that require that all transactions with digital assets, including transactions with brokers and dealers registered with the appropriate authorities.
«Working with all cryptocurrency traders, stock exchanges etc., will have to obtain a license SEC of Thailand as a Forex dealer as well as to inform about the source digital assets,» — said in a statement.
Under the new law, cryptocurrency investors will have to pay 7% value added tax (VAT) and 15% tax on profits from investments. Retail investors who trade through cryptocurrency exchanges are exempt from VAT.
However, the Chairman of the Thai Association of financial technologies Korn of Chatikavanij believes that the new law will hinder the development of Thai startups, as they begin to register abroad to avoid paying taxes.
According to the draft decree, issuers ICO will be given 90 days to provide information to the SEC Thailand. The deadline was extended from 60 days after market participants have complained that «60 days is too little.»
Meanwhile, as reported in the Thai Post, a Thai exchange, Jay Mart Plc had postponed the release of its coins Jfin local crypto exchange, Crypto Exchange TDAX, as it expects a tightening of the Royal decree.