Thailand's axes planned a cryptocurrency tax of 15 %

Thailand has rejected plans to collect a withholding tax of 15 percent on crypto transactions after it was pushed back on one of the largest markets of Southeast Asia for digital currencies by dealers.

Tax officials in the country said on Monday that people who achieved income from the trade in cryptocurrencies or mining could report them as capital profits in their income taxes.

The new rules described in a manual published by the Thai tax authority will also enable dealers to compensate for their annual losses with the profits achieved in the same year in order to comply with the demands of those in the up -and -coming industry that had warned that excessive taxes would kill a sector in their legislation.

Trade with Bitcoin and other online currencies in Thailand divided rapidly during the Coronavirus pandemic, which the country hit hard in traditional industries such as tourism-an area that generated about a fifth of GDP before the border was closed in 2020.

The participants of the crypto industry welcomed the announcement of Monday. "The finance department did a lot of homework and also turned to crypto operators to get feedback," said Pete Peeradej Tanruangporn, Managing Director of Upbit, a crypto exchange, and co-chair of the Thailand Digital Asset Operators Trade Association. "This is much friendlier for both investors and the industry."

in a country that suffered a devastating currency and financial crisis in connection with "hot money flows" in 1997-98, the Thai supervisory authorities were careful about the regulation of crypto when they were approached.

The Bank of Thailand, the state's Securities and Exchange Commission and its Ministry of Finance announced last week's plans to publish regulatory guidelines in order to restrict payments in digital currency.

The committees said that the use of digital assets for the payment of goods and services "would not benefit consumers and companies", but added that they would not support the development of financial technologies such as Blockchain and would not prevent investments in them.

You invited stakeholders to submit comments and suggestions by February 8th.

Critics of the proposed measures say they go too far. "The restriction of crypto payments is unnecessary," said David Carlisle, director of politics and public affairs at Elliptic, a research and analysis group for digital assets. "With reasonable security precautions, retailers can accept crypto payments without taking excessive and far -reaching risks that cause damage."

Thailand's efforts to tax and regulate crypto come at a time when other countries in the region want to do the same. Indonesia banned financial institutions last week to facilitate or market the trade in crypto-assets.

Singapore ordered crypto companies not to market or apply their offers to small investors, and described digital assets as "highly risky and not suitable for the general public".

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