Cryptocurrency traders in Thailand will soon start paying up to 15% in taxes on their crypto profits, according to a source from the country’s finance ministry.
Capital Gains Tax on Crypto
The source revealed that investors are required to report their projects and file for taxes before the end of the year or they risk facing sanctions.
The regulator noted that the tax rule applies to crypto investors and mining operators, excluding digital asset exchanges.
Due to the surge in crypto market size last year, the Thai Revenue Department stated that it intends to closely scrutinize the asset class this year.
“The department has the authority to collect taxes from cryptocurrency trading as profits from such activity can be considered assessable income under Section 40 of the Royal Decree amending Revenue Code No.19,” the ministry stated.
Akalarp Yimwilai, CEO of crypto exchange Zipmex, commented on the new rule, stating that investors are willing to pay taxes but that regulations on it lack clarity, and calculating tax profits and losses is difficult.
Furthermore, he noted that if regulators have advanced technology to calculate crypto profits, it will be good for everyone.
Thailand Crackdown on Crypto
While Thailand’s tourism ministry is making efforts to welcome crypto investors to the country in a bid to pre-pandemic tourism revenue, the nation’s financial regulators are instead doing the opposite by cracking down on the asset class.
In December 2021, the Bank of Thailand (BoT) prohibited commercial banks from being involved in crypto trading, saying that its price volatility makes it risky for investors.
The move comes at a time when Siam Commercial Bank Pcl (SCBX) announced it has acquired a 51% stake in local cryptocurrency exchange platform, Bitkub, for a whopping sum of $537.17 million.
The bank noted that the deal is subject to completion due to regulatory approval.
Red Lines
Despite the growing adoption of crypto by individuals and financial institutions in Thailand, the country’s financial regulators continue to implement a tougher stance against the asset class.
Just a few weeks ago, BoT announced that it will draw red lines on the cryptocurrency industry this month in order to reduce risk and safeguard investors.
