Governments and authorities all over the world are trying to ensure that cryptocurrencies are not left unattended. They intend to make them a part of their economic structure through regulations or national-level policies. As a result, crypto enthusiasts believe this goes against the concept of decentralization in the blockchain world. But it is happening, and many countries, including Thailand, are on the move.
In a recent development, the finance ministry of Thailand has announced that it is issuing new cryptocurrency taxation policies. As a result of these new policies, retail investors and miners will also be covered.
Also, if these miners and retail investors fail to pay taxes, they will be punished accordingly. However, this rule does not include the cryptocurrency exchanges operating in the country.
Thailand prepares crypto traders for increased taxes and high surveillance
Thailand’s finance ministry has moved to impose a 15% tax on all taxpayers that are making capital gains from cryptocurrencies. The ministry has further planned to increase check and surveillance on crypto investors. It instructed investors to file their income sources and applicable taxes. These taxes will help the government collect more data and information about the country’s crypto community.
As its skyrocketing trading volume and market cap suggested, Thailand is increasingly becoming pro-crypto. Therefore, the new rule might be triggered by this reason. The uncertainty and fears of financial mismanagement hovering around the use of crypto have also led the country to increase its check over the sector. The new law is now applicable under section 40 of the Royal Decree amending Revenue Code No. 19.
Experts also believe that Thailand has proposed the new rule to recover the loss of its struggling tourism sector. The country intends to attract more global crypto traders. Also, the Tourist Authority of Thailand (TAT) is planning with multiple organizations to allow crypto payments for tourists. This would then portray the country as ‘crypto-positive,’ luring more investors and traders.
Previously, the Bank of Thailand announced its plans to bring in new crypto regulations in mid-December. The Thai Government had also expressed its intent to define ‘red lines’ for crypto in the new year. Thus, the country was able to introduce the new plans within the first week of 2022. It is yet to be seen how investors and traders respond to this latest decision. Their response to the new law will also suggest whether it helps make the concept of crypto more mainstream in the Southeast Asian nation.