Thailand government has announced plans to impose tax on cryptocurrency trading and investments.
As per the tax framework outlined by Thai finance minister Apisak Tantivorawong last week, investors would be required to pay 7 percent in value-added tax (VAT) on all crypto trades alongside a 15 percent capital gains tax on returns on cryptocurrency investments, the Nikkei Asian Review reported.
Thailand's Ministry of Finance wants to implement regulation and taxation to prevent the country's nascent cryptocurrency market from being used for money laundering, tax evasion, and other criminal activities.
The Cabinet had issued two royal decree drafts last month to this effect.
Thailand's crypto-based businesses are facing the pressure of government crackdown. Entrepreneurs launching new companies are reportedly trying to register their startups in more investment-friendly Singapore to raise capital through initial coin offerings (ICOs).
The Bank of Thailand in February banned local banks from investing and trading in cryptocurrencies, creating uncertainty among local investors.
"They (the finance ministry and Bank of Thailand) have to be cautious not to allow their conservative instincts to result in draconian regulations," Nikkei quoted former Thai Finance Minister Korn Chatikavanij as saying.
He currently serves as chairman of the Thai Fintech Association.
by Joji Xavier
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