Thai SEC tech consultant admits the necessity of reconsidering the country’s digital asset tax framework introduced in late March.
Thailand’s Securities and Exchange Commission (Thai SEC) and Thai Fintech Association
technology consultant Bhume Bhumiratana, along with members of the local crypto community, have urged financial authorities to reconsider the country’s cryptocurrency tax framework, local news outlet Bangkok Post reported Tuesday, April 17.
According to Thailand’s proposed crypto tax framework released in late March, the value added tax (VAT) for cryptocurrency trades would be 7 percent, while returns would be subject to a capital gains tax of 15 percent.
Bhumiratana expressed concern over the introduced crypto tax law’s treatment of tokens sold in Initial Coin Offerings (ICO). He stated that tax collection from ICO-issued tokens should be considered differently from digital assets in general “because digital tokens differ in terms of asset value." The SEC consultant stated:
"It is hoped that the Finance Ministry and the Revenue Department will consider issuing another law to delay the implementation of digital asset tax."
As reported by Bangkok Post, the introduction of the digital asset tax has provoked a strong negative reaction among local cryptocurrency business owners and enthusiasts, particularly among ICO issuers.
Thuntee Sukchotrat, CEO at JIBEX cryptocurrency exchange, explained that the rights of investors should be approached with “financial and investment literacy” to allow local startups to raise funds from the Thai market. Otherwise, according to Sukchotrat, Thailand “will lose good ICO transactions to other markets."
Thailand’s government has taken an uncertain stance regarding cryptocurrency regulations previously, especially in terms of ICOs. In February, Thai crypto exchange Thai Digital Asset Exchange (TDAX) paused ICO registrations awaiting the release of regulatory framework from the Thai SEC.
Also in February, the central Bank of Thailand asked all banks in the country to stay away from cryptocurrency, advising the banks to ban customers from using credit and debit card to make crypto purchases, pending regulatory clarity. However, Thai Finance Minister Apisak Tantivorawong stated on Feb. 7 that the Thai government will not ban crypto trading, but will develop a crypto regulatory framework, as it is reportedly in the process of doing since last month.