Thailand Dodges Cryptocurrency Regulations

This Is Section 44 Law

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Thais deputy prime minister announced that the mandate for the ICO and cryptocurrency should be finalized in one month. Various regulators had a meeting and came to a conclusion that no need for invoking the country’s controversial section 44 law. They should just introduce a new special law instead of that.

Crypto special law

The secretary-general of the Securities and Exchange Commission in Thailand, Mr. Rapee Sucharitakul made a revelation that the related committees met and decided to enact this special law. This will govern all the cryptocurrencies with TSEC in charge.

The law is also meant to regulate the initial coin offerings (ICOs) including the provision of rules on the involved parties in token sales such as the middlemen, investors, trading platforms, issuers and the new outlets, adding:

“The special law will regulate the purchases and sales of cryptocurrencies and ICOs in order to avoid market manipulation, money laundering, tax evasion, as well as multi-level marketing schemes.”

Mr. Aphisak Tantiworawong, Thais finance minister informed the news outlet of the plans of the revenue department to start taxing digital currencies and has been waiting for the result of the study from the various units involved in the drafting of the law.

The involved units are the Anti Money Laundering Office, The bank of Thailand, Finance Ministry and TSEC. They met to make sure that they discussed the regulation of the cryptocurrencies. Therefore, the deputy prime minister has ordered for the fastening of the law concerning cryptocurrencies and ICOs so that this is finalized in a month.

“Section 44” need

Thai regulators have been very concerned about the continuous and rapid cryptocurrency and ICO market growth. Therefore, this has triggered the formation of “section 44” to enable regulation of the industry.

The section 44 of the interim constitution of 2014 grants empowerment to the National Council for peace and order to issue changes in any field.

According to the PBS report;

“The deputy prime minister in charge of legal affairs has made clear that Section 44 which empowers the prime minister to have absolute power to make a final decision on all problems will remain in force although the country will have the new constitution in use.”