After receiving criticism from dealers in one of Southeast Asia’s major digital currency exchanges, Thailand has stripped back from its plans to levy a 15 percent withholding tax on crypto transactions.
The new regulations will enable traders to credit their yearly losses against profits achieved in the same year. This furnished answers for the concerned individuals in the embryonic business who had worried that high tax would kill off a sector in its infancy.
On Monday, tax officials disclosed that persons who yielded revenue from crypto trading or mining might document these as capital gains on their income taxes.
“The tax department conducted a lot of investigation and went out to crypto operators as well to obtain feedback,” said Pete Peeradej Tanruangporn, chief executive of Upbit, a crypto exchange and co-chair of the Thailand Digital Asset Operators Trade Association.
“It is far more favourable to both investors and the industry.”He added.
Thailand puts a smile on the investor’s face
Last week, the Bank of Thailand, its Securities and Exchange Commission, and its finance ministry disclosed intentions to establish regulatory guidelines to prohibit digital currency payments.
The authorities claimed that utilizing digital assets to pay for goods and services “would not significantly benefit consumers and businesses.” However, they stressed that they supported the development of financial technologies such as blockchain and were not restricting their investments.
Critics of the intended regulations have suggested they go too far. “Restricting crypto payments are unnecessary,” said David Carlisle, head of policy and public relations of Elliptic, a digital asset research and analysis organization. “With sufficient precautions in place, shops may accept crypto payments without introducing large and wide risks that cause harm.”
Thailand and India part ways
With the Thailand government showering happy news to the crypto investors in their nation, India does precisely the opposite. India’s decision to levy a hefty 30% tax on crypto gains has mixed feelings among investors. While some think this is an excellent initiative from the government’s end paving the way for crypto regulations, some believe that the government is looting the investors.
It’s hard to ignore that the 30% tax is indeed a monstrous decision. The Indian government had long kept its mouth shut when it came to deciding crypto regulations. Even when the laws were unclear, Indian investors kept pooling their money in crypto. Many think that the government played tactically by imposing the law at the right time.