Thailand on Sunday published two royal decrees aimed at regulating digital currencies and Initial Coin Offerings (ICOs) to protect investors, various media reported. The decrees took effect on Monday.
The Bangkok Post said that the decrees had revised Thailand's tax code to add taxing digital currencies, but added that the order does not prohibit digital currencies, ICOs, and other cryptocurrency-related transactions.
The report said:
“All sellers are required to register with the SEC within 90 days of the law taking effect,” and added, “Sellers of digital tokens unauthorized by the SEC will be fined no more than twice the value of the digital transaction or at least 500,000 baht [~US$15,703]. They could also face a jail term of up to two years.”
The first Royal Decree, titled the Royal Decree on Digital Asset Business and published in the Thai Government Gazette, amends the Digital Asset Management Act BE 2561 that was approved in March. The amendment to Revenue Code No. 19 sets a 15% tax on cryptocurrency profits.
In addition, the Securities and Exchange Commission (SEC) was tasked to regulate cryptocurrencies and their operations, including the issuance and offering of virtual currencies and digital asset businesses.
The SEC is also mandated to set fees and requirements to register and grant approval to cryptocurrencies and their operations, as well as to draft guidelines to manage possible issues.
The report stated:
“The [finance] ministry and SEC will now work on organic laws requiring all digital asset transactions, including those of digital asset exchanges, brokers, and dealers, to be registered with the relevant authorities according to the decree.”
A separate report by Lexology further explained that the royal decrees provided a distinction between a cryptocurrency and digital token. It defined digital assets “to include the operation of a digital asset trading center, operation of a digital asset brokerage, and operation of a digital asset dealer.”
“In terms of the offering of digital tokens, the Royal Decree takes an approach analogous to that of securities under the Securities and Exchange Act. Digital tokens must be offered for sale only according to conditions prescribed by the SEC, and only after the prospectus has become effective,” Lexology said.
Thailand starts taxing cryptos
In March, Thailand’s military leaders announced a move to start taxing cryptocurrency. Thailand’s Finance Minister Apisak Tantivorawong said that new legislation was introduced requiring a fixed 7% value-added tax on all digital asset trades, along with a 15% capital gains tax on returns from digital asset investments.
This article appeared first on Cryptovest
