Thailand’s Revenue Department cancels plans to impose a 15% withholding tax on crypto transactions in light of economic conditions. The news comes amid resistance from traders in the country.
In January, multiple reports surfaced citing sources from the Finance Ministry that Profits from cryptocurrency trading will be subject to a 15% capital gains tax.
This new method allows crypto traders in Thailand to offset their annual losses against the profits they made in the same year.
The news was welcomed by crypto enthusiasts, including Pete Peeradej Tanruangporn, chief executive of crypto exchange Upbit.
“The Income Department did a lot of homework and contacted crypto entrepreneurs for feedback. It is more friendly to both investors and the industry,” he said.
Thailand and crypto
The news follows the efforts of Thailand to Attract crypto investors into the country.
In November 2021, the Tourism Authority of Thailand (TAT) turned to “crypto millionaires” to boost the country’s pandemic-hit economy.
TAT Governor Yuthasak Supasorn told Bloomberg that people who are “rich with cryptocurrency” may want to shop. He added, “If they can use their currency here without exchanging or having to face government taxes, it will make it more convenient for them.”
However, last week The Securities and Exchange Commission (SEC) said it plans to issue guidelines on limiting cryptocurrency payments.
Previously, the Thai SEC has suspended crypto exchange Binance.
In June 2021, regulators has filed a criminal complaint against Binance to operate its digital asset business without a license.
And what about DeFi?
The SEC is also targeting $197 billion from Decentralized Finance (DeFi).
in June last year Regulators say DeFi projects may require a license to operate in jurisdictions.
“Issuing digital tokens must be authorized and supervised by the Securities and Exchange Commission, and issuers are required to disclose and offer coins through token portals licensed under the Digital Assets Ordinance.”
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