In Thailand the cryptocurrency legislation comes into force

In Thailand the cryptocurrency legislation comes into force

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On Monday in Thailand, the decree on the regulation of the cryptocurrency and initial coin offering (ICO) comes into force. The Digital Asset Management Act BE 2561  was approved by the Thai government in March and has since undergone several changes, writes Bitcoin.com.

In addition, according to local media, the Thai government announced a new version of the tax law with the aim of imposing a 15% tax on profits with a cryptocurrency.

“The decree wasn’t сreated to prohibit cryptocurrencies, ICO and other transactions related to digital assets, but to protect investors,” Finance Minister of the country Apisak Tantivorawong said earlier.

According to the decree, the duties and powers to regulate digital currencies and their operators will be with the Thai Securities and Exchange Commission (SEC),  Matichon reported.

The article says that the SEC will be responsible for four areas. The first is the regulation of the emission and supply of cryptocurrencies, as well as of companies engaged in digital assets. The second is the establishment of monetary fees and requirements for the registration and approval of cryptocurrencies and their operators. The third is the establishment of common principles for solving potential problems. The fourth is the remaining areas that were not mentioned above.

“All sellers must register with the SEC within 90 days after the law comes into force,” writes Bangkok Post. – Sellers of cryptocurrencies not registered with the SEC will be fined twice the amount of the digital transaction or at least 500,000 baht (about $ 15,703). They can also go to jail for up to 2 years.”

In addition, according to the Bangkok Post, “the Ministry of Finance and the SEC will now work on organic laws requiring that all transactions involving digital assets, including those carried out by stock exchanges, brokers and digital asset dealers, be registered with the relevant departments in accordance with decree.”

According to Matichon, despite the fact that the decree has already entered into force and, apparently, clearly showed in what direction the Thai government decided to move, the Bank of Thailand announced that it will wait until the SEC will talk more about the regulatory standards, and only after that will voice its position on cryptocurrencies and ICO. Earlier, the Bank of Thailand banned local banks from conducting any cryptocurrency activities.

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