Lawmakers in Thailand are planning to enforce reformation in current cryptocurrency regulation. The decision comes after major concerns regarding the slow growth of the country which has led it to be termed “uncompetitive”. According to a news release posted on 25 November, the Securities and Exchange Commission (SEC) of Thailand wants to bring about modulation and changes in the nation’s cryptocurrency and digital policy, the royal decree, in the coming year.
A Flexible Approach
Regulation and proceedings must follow a flexible standardized approach. According to data released by the SEC, ever since coming into power in 2018, only about five companies have been successful in getting their digital asset exchange licenses authorized. Among them, only two companies have been launched into the market, Bitkub Online Co Ltd and Satang Pro Corporation. Bitcoin Co shut down its services in the country in August and Bitherb Co Ltd (bitherb.net) and Huobi Thailand Co Ltd haven’t begun their operations yet.
The SEC is currently still evaluating the proposed changes with Ruenvadee Suwanmongkol, Secretary-General of the SEC, stating that, a flexible approach should be undertaken in consideration with the financial market. Laws shouldn’t be outdated and should fulfill the requirement of the financial market and be up to par with the current trends worldwide.
Tokens and Trading
The country has been strict about the sale of digital tokens with heavy penalties imposed on the unlicensed sale of tokens. The penalties include fines of over 500,000 baht ($16,540) including prison time of two years. Investors concerned with digital asset trades are charged with a 7% value-added tax (VAT) payment on their 15% withholding tax on their investment surplus. If the digital assets are traded through exchanges, investors are exempted from the VAT surcharge. If their trade earns no gains investors are still required to pay their VAT.