In what is seen as acceptance of the fact that cryptocurrencies are here to stay, the Thai government has decided to embrace the new industry and reap from it rather than fighting it. CNBC reports that the Thai cabinet on Tuesday agreed to draft new laws that will oversee the trading of cryptocurrencies and tax the highly unregulated market.
Thailand’s government spokesperson, Nathporn Chatusripitak, said that the finance ministry has also proposed that the new laws and regulations should help tame the use of cryptocurrencies in money laundering and fraud.
The details of the new regulations will be issued at a later date,
-Said the spokesperson.
There were uncertainties in the crypto industry in February after Thailand’s central bank released a circular that barred financial institutions from handling any cryptocurrency-related transactions.
It is expected that the new developments will help to stabilize the market and financial institutions, and other cryptocurrency traders will have clear and precise guidelines on how to deal with the virtual coins.
Crypto’s Special Law
Thailand Securities and Exchange Commission Secretary General, Rapee Sucharitakul, has also revealed that different regulators in the country met and decided to come up with a new special law that will govern all dealings with regards to cryptocurrencies, with TSEC in charge.
Cryptona reports that the new laws will also help in regulating ICOs, including the creation of rules for the involved parties in token sales such as middlemen, investors, trading platforms, issuers and new outlets.
The special law will regulate the purchases and sales of cryptocurrencies and ICOs in order to avoid market manipulation, money laundering, tax evasion, as well as multi-level marketing schemes,
-Said Mr. Sucharitakul.
Meanwhile Thailand’s Finance Minister, Aphisak Tantiworawong, has revealed that he was waiting for the relevant government branches to finalize a study that would inform the revenue department on how to start taxing digital currencies. The branches involved are Anti-Money Laundering Office, The Bank of Thailand, the Finance Ministry and the TSEC.
Following the meeting of the relevant branches, Thailand’s Deputy Prime Minister in charge of legal affairs has ordered the drafting of the new law that will govern and regulate the cryptocurrencies and ICOs. The branches now have a month to finalize the new crypto law.
There have been concerns regarding section 44 of the country’s 2014 constitution, which gives the National Council for peace and order powers to issues changes in any field. However, after the meeting by the different financial sector branches, it was revealed that the controversial section 44 of the constitution will not be invoked. Instead, a new law targeting cryptos should be introduced.
Thailand joins other countries across Asia which have taken measures to exert control over cryptocurrency exchanges and other activities.
Image Credit: Deposit Photos
What’s your take on Thailand’s decision to regulate and tax cryptocurrencies? Should other governments follow Thailand’s lead? Leave us your opinion in the comments section.