Despite tax relief, mixed signals for crypto in Thailand

Despite tax relief, mixed signals for crypto in Thailand

On February 7, Reuters reported that the Thai Ministry of Finance will do without corporation tax and VAT for companies that initially work. Coin offers (ICOS) for investments.

According to government speakers, companies will have access to alternative methods of creating capital through token emission in addition to traditional methods.

The Thai government supported by the military estimates that according to the report, investment token offers worth around 3.7 billion dollars in the next two years.

stated that the offer of these incentives would result in a tax loss of around $ 1 billion. Last year, the government rejected plans to raise 7 % VAT on crypto trading for stock exchanges and private investors.

contradictory crypto messages in Thailand

cryptocurrency trade and adoption are popular in Thailand, but there were contradictory messages from the ruling elite.

The Thai Ministry of Tourism has tried to advertise the place as crypto -friendly. However, the regime banned the use of crypto-assets for payments last year, and its central bank has spoken out for a broader.

The Thai SEC prepares stricter rules for crypto trade and investments in harmony with measures that were taken worldwide after the collapse of the FTX in November.

It remains to be seen whether companies that spend the tokens that are suitable for these new tax benefits, register with the financial supervisory authority and comply with their rules, but it is very likely.

According to the examinations of the crypto tax software company Recap from last month, Thailand's capital Bangkok has developed into a new crypto hub. Without the clarity that Singapore and Hong Kong have, it can be difficult to compete in competition.

industry analysts have proposed that tightening the regulations in Thailand could hinder its ability to become a regional crypto hub.

"Thailand also exacerates its rules for the trade with crypto and advertising for digital assets. With stricter rules, it will be interesting to see whether this will help or hinder Bangkok's position as a crypto hub in the coming months," said Daniel Howitt, CEO from Recap, last month.

Thailand's largest crypto exchange Bitkub has a current daily volume of around $ 29 million, according to Coingecko.

The markets withdraw again

The cryptoma markets are again on the withdrawal, whereby the total capitalization decreases 1 % to $ 1.06 trillion at the time of writing this article.

BTC had lost 1.4 % and fell out of his four -day channel to be traded at $ 22,000. In the meantime, Ethereum kept stable at $ 1,564 after it had lost only half a percent that day.

.