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On Sunday, May 13, Thailand passed a law for a new regulatory framework for digital currency operations in the country. The new law calls cryptocurrencies as “digital tokens and digital assets” and brings them under the regulatory purview of Thai Security Exchange Commission (SEC) thereby levying 15% capital gains tax on crypto earnings.
As reported by the Bangkok Post, the Thai Finance Minister made it clear that introducing these laws, the government has no intention of banning digital currencies or ICOs. However, he said regulators need to oversee this space, especially as increasing pressure arises from several firearms and drug cases involving crypto use coming to light.
The government of Thailand is also working on new legislation that will allow local police to seize suspicious crypto fund usage. Currently, under the existing laws, cryptocurrencies have no legal value in Thailand and hence police don’t have any control over them.
The new law requires crypto exchange operators or cryptocurrency sellers to register with the SEC. If they fail to comply, authorities can levy a penalty of 500,000 Baht or even imprison them for up to two years.
The government of Thailand has been for long working on introducing regulatory measures for digital currencies. Back in February, Thailand’s central bank banned all other commercial banks in the country to purchase digital currencies using credit cards.
During the same time, the Thai Digital Asset Exchange (TDAX) also ordered to halt the operations of Initial Coin Offerings owing to regulatory uncertainty.