The revenue department in Thailand has terminated its plan to apply a withholding tax of 15% on crypto transactions, according to the Financial Times.
In January, taxpayers and holders of crypto in Thailand were told they would be subject to capital gains tax this year.
What’s more; to avoid penalties, investors were advised to identify cryptocurrencies between their income when filing taxes.
Recently, amid opposition from traders in the country, it’s been said that the plan has now been abandoned.
The new approach enables such traders to offset annual losses against gains that have been made in the same year.
Crypto enthusiasts have welcomed the new rules. Upbit chief executive Pete Peeradej Tanruangporn said: “It is much more friendly to both investors and the industry. The revenue department did a lot of homework and reached out to crypto operators as well to get feedback.”
As a country that relies on tourism; one that suffered a financial crisis in 1997-1998, Thailand has been cautious in its approach to cryptocurrencies. However, it hasn’t strayed too far.
In a push to revive its popularity, in November 2021, the South Asian country attempted to entice the wealthier crypto community to its tropical beaches to rebuild the losses of the coronavirus lockdowns.
According to Bloomberg, it had plans to issue its own cryptocurrency, wallet, and build a whole new ecosystem for tourists.
That said, it seems Thailand is confused about its plan of action for the near future of crypto, its currencies, and its payments.
The Thai Securities and Exchange Commission (TSEC) has previously cracked down on the crypto exchange, Binance. A criminal complaint was filed for the bitcoin and altcoin exchange for operating a digital asset business without obtaining a license.
TSEC has also got its eye on the $197bn in decentralized finance (DeFi). “The issuance of digital tokens must be authorized and overseen by the Securities and Exchange Commission and the issuer is required to disclose information and offer the coins through the token portals licensed under the Digital Asset Decree”, it said.
CryptoGamblingNews have high hopes that this turnaround will set the country in the right direction, be it digital currency payments or easing on capital gains.
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