The revised tax policy exempts cryptocurrency traders from the mandatory 7% Cryptocurrency tax on authorized exchanges while providing tax breaks of up to ten years for crypto startup investors.
Thailand’s finance ministry is said to have relaxed crypto tax regulations in order to encourage investment in the digital asset market.
The tax changes come just a few weeks after the government abandoned its initial plans to impose a 15% tax on cryptocurrency gains. According to Reuters, the new tax policy exempts cryptocurrency traders from the 7% value-added tax (VAT) on authorized exchanges.
The new tax policy would also allow traders to deduct their annual losses from their crypto investment gains. The new tax policy promises tax breaks of up to ten years for investors who invest in crypto startups in the country for at least two years.
The revised tax policies, according to finance minister Arkhom Termpittayapaisith, were developed to promote the nascent digital asset market in South East Asia’s second-largest economy. Thailand has grown to become one of the leading crypto destinations in Asia as a result of the government’s crypto-focused regulations and ability to work on feedback from ecosystem stakeholders.
The new tax policies could also serve as a model for other countries considering imposing some form of crypto taxation. Following the announcement of a 30% tax by the Indian government, Indian crypto traders have demanded something similar.
Here’s how the Thai Stock Exchange intends to integrate cryptocurrency into its digital asset platform.
The SET announced its digital asset exchange early last year, with the intention of avoiding cryptocurrencies at first. According to president Pakorn Peetathawatchai, the Stock Exchange of Thailand (SET) is considering launching a new digital asset exchange integrated with the cryptocurrency market.
Also Read: Thailand’s Stock Exchange is Slated to Unveil a Virtual Currency Exchange shortly
According to Peetathawatchai in a Bloomberg interview on Sunday, the SET plans to launch its own digital asset exchange in 2022 and to enable new exposure options such as investment tokens and utility tokens. While the SET’s upcoming digital asset exchange will not be directly related to crypto markets, the platform will have some connection to cryptocurrencies such as Bitcoin (BTC).
The stock exchange will be explicitly linked to a cryptocurrency exchange, allowing investors to convert their cryptocurrency into fiat currency before trading on the SET. “Connecting to the cryptocurrency market would be our way of doing business on this digital and traditional asset,” he added. The SET did not respond immediately to Cointelegraph’s request for comment.
This article will be updated as new information becomes available. As previously reported, the SET announced plans to establish a digital asset trading platform early last year, with a target launch date of the second half of 2021.
Several countries, most notably South Korea, have been debating how to tax the cryptocurrency market. South Korea has delayed its crypto tax plan until 2023 due to widespread opposition.
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