Thailand’s original plan to levy a 15% withholding tax on cryptocurrency transactions has been scrapped following major pushback from crypto traders.
The statement announced only last week, set forth plans to regulate the digital asset industry in Thailand. The Financial Times reported that Thailand’s regulatory authorities have scrapped the proposed tax plan following strong opposition from traders in the country.
On January 6th, the Thai Finance Ministry announced that Individuals trading crypto will be subject to 15% cap gains tax in Thailand. This new tax would not affect exchanges, however, and followed Thai lawmakers as they increased their regulation of the crypto industry.
Thailand has already banned NFTs and meme coins, and Thailand’s central bank has stated it will implement new measures to further regulate the industry. Back in June 2021 Thailand banned the trading of certain NFTs and meme coins, then SEC Secretary-General Ruenvadee Suwanmongkol stated that the ban would extend to digital currencies with one or more of these characteristics:
- Symbolized by an influencers fame
- Unique and cannot be redeemed for the same amount of digital tokens of the same category and type.
- A digital token is used in blockchain transactions and issued by digital asset exchanges or stakeholders.
While crypto has boomed in Thailand over the past 18 months, particularly among the youth, the Thai SEC has seemingly flip flopped around regulation. However The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and Ministry of Finance (MOF) have jointly committed to ensuring greater regulation of the crypto industry.
The most recent report by the FT outlines how Traders of cryptocurrency will be allowed to offset their losses against gains made in the same year, marking a 360 turn around from the previous week when officials outlined the 15% cryptocurrency tax before axing it this week.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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