Thailand Starts Crypto Regulation Today
Law Takes Effect
Crypto Law in Effect
The Thai Governments mandate to initiate regulation of cryptocurrencies and also ICO’s will be effective from Monday. Therefore, Thai cabinet was involved in the approval of the Digital asset management Act BE 2561 in March. This has already been amended.
The revenue code revision code No 19 was announced meant to tax the profits from cryptocurrencies at 15%. Apisak Tantivorawong who is the finance minister said;
It [the decree] was not meant to prohibit cryptocurrencies, initial coin offerings (ICOs) and other digital asset-related transactions, but to protect investors.
Power to Thai SEC
In accordance with the mandate, the Thai based securities and exchange commission (SEC) has the authority and duty to regulate the various digital currencies. Additionally, it will regulate firms involved in their operation, reported Matichon.
Therefore, the publication mentions the four major areas in which the SEC might be responsible for. First of all, it aims at the regulation of the issuing and also the offering of the digital asset and cryptocurrency businesses. Secondly, they will be involved in setting the requirements and fees for cryptocurrency registration and approval and also the operators. Third, making a guideline which will help in the provision of solutions for potential issues. Fourth covers the areas which are not mentioned.
The Bangkok post wrote;
Sellers of digital tokens unauthorized by the SEC will be fined no more than twice the value of the digital transaction or at least 500,000 baht [~US$15,703]. They could also face a jail term of up to two years.
Therefore, the news outlet gave elaborations that “the [finance] ministry and SEC will now work on organic laws requiring all digital asset transactions, including those of digital asset exchanges, brokers, and dealers, to be registered with the relevant authorities according to the decree.”
Other than the rules and also the direction in the mandate, the Bank of Thailand claims that it might wait for SEC to make announcements of the regulation details before making the stance on the ICO’s and the Cryptocurrencies. This is as it was reported by Matichon. Therefore, BOT has banned all the financial corporations from getting involved in the