Law On Cryptocurrency Control Comes Into Force In Thailand
On May 13, the Thai authorities approved a bill, designed to control and tax cryptocurrencies and other digital assets, local media reports. Punishment for law violation implies such preventive measures as fines or imprisonment.
According to the law, participants engaged in the crypto trading must pass registration, initiated by the Thai Security Exchange Commission, within 90 days. Depending on the court decision, those who break the law will be required to pay twice the transaction amount as a fine or to serve a prison sentence of up to two years.
As follows from to the report, the law aims to provide diversified control over the crypto and token use and to prevent fraudulent schemes to circumvent the tax system.
The Thai authorities had previously introduced two crypto taxation measures. The Finance Ministry approved the final document.
The bill regulates trades with digital assets and the procedure for charging transaction fees. According to the approved standards, VAT for crypto trades will be 7%, and 15% will be paid on capital gains.
The bill also aims to prevent possible issues in terms of tax fraud and money laundering schemes.
The Thai government has not expressed a clear position regarding the crypto business for a long time. The country’s central bank recommended the residents to stop using cryptocurrencies. Bank representatives assert that cryptocurrency exchange and creation of the crypto trading platforms pose a threat to users.