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Thailand Releases a New Taxation Policy on Cryptocurrencies while other countries Ease up

Thailand Releases a New Taxation Policy on Cryptocurrencies while other countries Ease up
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Written by Joel Degan

Thailand Releases a New Taxation Policy on Cryptocurrencies While Other Countries Ease Up

As expected, Thailand has come up with new rules to tame the wildly growing crypto space in the country. The country is set to implement a 7 percent value-added tax (VAT) and a 15 percent capital gains tax on cryptocurrency transactions. The regulatory authorities have also placed new regulations on crypto exchanges.

Earlier this year the Thai Blockchain Association requested Thailand’s Ministry of Finance to figure out a liberal approach towards digital currencies, but the regulatory authority ignored the appeal. The new bill will ask crypto exchanges to employee more rigid know-your-customer (KYC) procedures to identify each person involved in crypto dealings.

On the other hand, the government of Philippines is taking a more progressive approach to virtual coins.  According to a government official, ten crypto-based start-ups will be launching an operation in the special economic zone which gives significant discounts on tax tiers. The start-ups will have ICO platforms, crypto miners, and exchanges. But, the companies will also have to invest in the economy of the nation for the next two years as an expression of gratitude. The $1 million investment will come on top of a $100,000 licensing fee

The government will also be supervising the start-ups through specific regulations and will force them to settle offshore issues without violating the laws of the nation.

Chief of the Cagayan Economic Zone Authority (CEZA), Raul Lambino, said, “We are about to license ten platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, and Koreans. They can go into cryptocurrency mining, initial coin offerings, or they can go into the exchange.”

Meanwhile, Abu Dhabi’s Global Market’s Financial Services Regulatory Authority released new regulations pertaining to the trade of digital currencies. Currently, the government has not come up with substantial rules as it is waiting for the response of the crypto community over the matter. The new framework will also supervise counter-terrorist financing, anti-money laundering, technology governance consumer protection, and safe custody rules. The guideline will also include spot crypto assets.

Chief executive, FSRA of ADGM, Richard Teng, said, “The FSRA is seeking to instill proper governance, oversight, and transparency over crypto asset activities. Our proposed regulatory regime is only possible with our deep understanding and knowledge of the solutions available to address the respective risks and represents the most comprehensive regime proposed by global regulators so far.”

On the other hand, state regulators in the US have not stopped the crackdown over fraudulent schemes even after the tax day.

After releasing a temporary order against PowerMining Pool in March the Secretary of State Securities Division, North Carolina has issued an all binding cease order against the company. As per the regulators, PowerMining Pool was functioning against the Securities Act of the state and also used lethal sales techniques to sell shares in bitcoin for mining other digital currencies. The authority noted that the company never responded to the temporary order and its website has been non- functional.

Different nations have specific outlays to manage digital coins, and it’s just a matter of time till we get to know about the beneficiary and the loser.

About the author

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Joel Degan

Joel is an entrepreneur specialized in the international business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business. He is currently working on decentralized autonomous organization (DAO) along with BittStreet.