Thailand Abandoned Its Proposed 15% Crypto Tax

Thailand is abandoning its proposed 15% tax on cryptocurrencies including mining. The Thai government faced strong backlash to the proposed crypto tax and remains one of the more crypto tax-friendly countries, for now

Paiboon Nalinthrangkurn, the Chairman of the Federation of Thai Capital Market Organizations, warned that taxing stock trading and cryptocurrencies may substantially lower the market by liquidity by as much as 40%.

Additionally, the proposed tax may deter foreign investors from trading.

The Bank of Thailand (BOT) issued a joined statement with the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) on regulating crypto payments: "​The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and Ministry of Finance (MOF) have jointly reviewed the benefits and risks of digital assets, and deem it necessary to regulate the usage of digital assets as a means of payment for goods and services, to avert potential impacts on the country's financial stability and economic system."

The BOT welcomes comments and suggestions to its proposed regulations on crypto payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term from stakeholders and interested parties. All must be submitted by 8 February 2022.

Bitcoin Dominance in Thailand

According to Statista Research Department, bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term accounted for 13.4% of cryptocurrencies in Thailand for 2021.

source: Statista

Instead of the 15% tax, people that earn from trading cryptocurrencies or mining may report the income as capital gains on their income taxes. Thus, annual losses can be offset against profit that was made within the same year.

On 22 December, the BOT warned that: “the spread of the Omicron variant was a key risk that could hinder the economic recovery going forward, and thus warranted close monitoring."

By scrapping the crypto tax, Thailand may attract miners and exchanges to operate in the country. Thailand is taking a different approach as opposed to India and Indonesia.

A short while ago, India announced it is imposing a 30% tax on income from cryptocurrencies. Furthermore, the Indian Finance Minister, Nirmala Sitharaman affirmed that losses from their sale could not be offset against other income.

Recently, the Indonesian Financial Services Authority (OJK) prohibited companies from marketing and facilitating crypto trading.