At a time when cryptocurrencies are becoming much more regulated, it is not surprising to learn that Thai regulators have reportedly agreed to enact two laws on both cryptocurrencies and initial coin offerings. Mr Apisak Tantivorawong, the Thai Minister of Finance announced that the government will be preparing for these regulations so they are ready to implement at the end of this month.
The first regulation is the Act on Digital Asset Businesses, which requires the registration and know your customer compliance of cryptocurrency operators, as well as imposing penalties and remedies for any violations of this.
The second regulation that Thailand is introducing is the revision of the country’s Revenue Code which concerns taxation related to cryptocurrencies and ICO’s.
The laws that they are looking to implement putting the Securities and Exchange Commission of Thailand in charge of the regulations, and added;
“Thai private companies that have already issued an ICO must comply with the law within 6 months.”
On top of this, Apisak has ordered the Thai Revenue Department to collect 7% VAT and 15% withholding tax on cryptocurrencies and ICO’s, and taxpayers can combine their crypto tax liabilities with their annual income.
Despite these new regulations, the Bank of Thailand has said that they will not change their stance when it comes to cryptocurrencies and ICO’s, and earlier this year, they prohibited financial institutions from five key cryptocurrency activities, which will stay, even when these new laws are implemented.
After the Bank Of Thailand prohibited these financial institutions, Krungthai Bank also followed suit. The bank's president, Mr Piyong Sriwanich, very openly said that his bank does not support cryptocurrencies and will not deal with them in any way, adding;
“…a deposit account with the bank and invests money in digital currency, the bank will close the account immediately.”