Thai SEC Seeks To Tweak Crypto Laws In Order to Boost Innovation and Growth
While the crypto industry has been attacked from all corners in the past, it has successfully managed to win the tough tides. In fact, major economies across the globe are now consider digital currency alternatives for their national currencies.
As U.S, China and the EU have already stepped up measures in developing their central bank digital currencies (CBDC) smaller Asian economies like Thailand and others are looking for similar alternatives.
The Thailand Securities and Exchange Commission is considering the implementation of new digital assets business regulations by next year. According to a local media report on Monday, November 25, the Thai SEC plans to boost crypto innovation in the country while simultaneously safeguarding investors’ interest.
Speaking to the Bangkok Post, Ruenvadee Suwanmongkol, secretary-general of the SEC said: "The regulator must be flexible to apply the rules and regulations in line with the market environment. For example, laws should not be outdated and should serve market needs, especially for new digital asset products, and be competitive with the global market. We need to explore any possible obstacles.”
The Thai SEC plans to amend a royal decree on digital assets business next year. The royal decree lists four different types of crypto business intermediaries which include brokerage firms, digital exchanges, dealers and token portal service providers like the ICO portals.
The Thai SEC mandates that the ICO portals should function subjected to the approval from the regulator. On the other hand, brokerages, dealers, and crypto exchanges shall apply for license from the Finance Ministry.
Speaking about this legislation last year, the SEC general secretary said: "The legislation also aims to protect investors from risk of fraud and deception by dishonest persons, money laundering and exploitation of digital assets to facilitate illegal financial transactions, while ensuring regulatory clarity to facilitate legitimate uses of digital assets”.
The Thai SEC has warned anyone indulging in illegal activities and said that it will levy heavy penalties on the perpetuators. For anyone selling unauthorized digital tokens or setting unauthorized crypto investment schemes and seminars, shall be fined a minimum 500,000 baht or twice the value of the digital transaction. Furthermore, the people involved in such schemes will be penalized two years of jail term.
Moreover, investors will have to pay 15% capital gains tax on profits derived from crypto investments in addition to 7% VAT on the trades.