Thailand urged a measured approach to cryptocurrency taxation

Thai authorities should exercise due caution before imposing any taxes on cryptocurrency transactions, said Watanya Wongopasi, a representative of the Democratic Party.

On her Facebook page, the politician posted a concise summary of the committee’s discussion on the issue in the relevant House of Representatives committee. In her view, such measures could deter investors.

Similar views are held by the head of the Thai Federation of Capital Market Organizations, Paibun Nalintrangkun. He noted that such a tax would reduce market liquidity by 40%. The firm iTax noted that the decentralized nature of cryptocurrencies would hinder gathering the necessary information.

Back in 2018, Thai authorities approved a document under which deals in digital assets are taxed at 7% VAT and a 15% capital gains tax. That the latter option had become operative was reported in January 2022 by Bangkok Post.

In the summer of 2021, considered regulating the decentralized finance sector. Before that, the central bank announced the introduction of rules regarding stablecoins backed by foreign currencies, assets, and algorithmic “stablecoins”.

In May, plans were announced by the local Anti-Money Laundering Office to require bitcoin exchanges to scan the chips embedded in citizens’ identification cards when opening new accounts.

In August 2021, the SEC opened public hearings on proposed amendments to the rules governing the operation of custodians of digital assets.

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