Thailand is rapidly tracking its plans to tax cryptocurrencies as it draws up rules for digital asset traders this month to bring more clarity to cryptocurrency-related activities.
The head of Thailand’s revenue department said clear criteria for calculating profits from cryptocurrency trading will be finalized this month.
The announcement came less than a week after the Southeast Asian government announced plans to impose a 15% capital gains tax on traders and miners.
According to an article published on Tuesday in the Bangkok Post, Thai Prime Minister Prayut Chan-Ocha has instructed the Ministry of Taxation to share ideas on the matter and provide clarification to investors and the public.
The division has already held talks with the Bank of Thailand, the Securities and Exchange Commission and the Thailand Stock Exchange.
The Thai Digital Asset Association contacted the revenue department on Sunday to seek clarification on capital gains and tax deductions, according to local media. The President of the Subcrit Bonsat Association said:
“Most crypto-investors are willing to pay taxes, but are worried about whether this move will violate the Income Act.”
Some traders are concerned that residual taxes or fines may be applied to profits and trades made in previous years.
A government spokeswoman said she did not intend to hinder innovation and development in any industry, including fintech, but warned: “If we rush to support [cryptocurrency trading] without a comprehensive understanding, a similar cryptocurrency crisis could arise. the financial crisis. ” “.
The new tax will only apply to the profits of traders and miners, not to Thai digital asset exchanges, the largest of which are owned by commercial banks and billionaire magnates. Those who do not comply with the new submission requirements may risk large fines.
On the subject: The central bank requires that Thai banks do not offer cryptocurrency trading
The move follows a series of warnings from Thailand’s central bank to commercial banks and companies about the use of digital assets as payment methods.
In December, the Bank of Thailand said it would introduce new measures to regulate the activities of individuals and companies linked to cryptocurrency in the so-called “red lines” in the industry.
However, growing regulatory pressure on the industry is at odds with the Kingdom’s tourism ministry, which is trying to bring crypto whales and nomads to the country to help revive the pandemic tourism sector.