The decree to regulate cryptocurrencies and initial coin offerings in Thailand goes into effect on Monday. The government has also revised the country’s tax code to add crypto taxation. Sellers of digital tokens will face a fine or even jail time if they fail to register with the regulator within 90 days.
Crypto Law In Effect
The Thai government’s decree to regulate cryptocurrencies and initial coin offerings (ICOs) goes into effect on Monday. The Digital Asset Management Act BE 2561 was approved by the Thai cabinet in March and has been amended since.
The revision of the Revenue Code No. 19 was also announced in order to tax crypto profits at 15%, according to local media. Finance Minister Apisak Tantivorawong previously said, as reported by the Bangkok Post:
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 the Thai SEC
According to the decree, the Thai Securities and Exchange Commission (SEC) has the duty and the authority to regulate digital currencies and their operators, Matichon reported.
The publication outlines four areas the SEC will be responsible for. The first is to regulate the issuance and offering of cryptocurrencies and digital asset businesses. The second is to set the fees and requirements for the registration and approval of cryptocurrencies and their operators. The third is to establish a guideline for dealing with potential problems. The fourth concerns all other areas not previously mentioned.
“All sellers are required to register with the SEC within 90 days of the law taking effect,” the Bangkok Post wrote, adding that:
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.
The news outlet elaborated 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.”
Despite the new rules and direction presented in the decree, the Bank of Thailand (BOT) says that it will wait for the SEC to announce other details of the regulations before it will make a stance on cryptocurrencies and ICOs, according to Matichon. The BOT has previously banned financial institutions from crypto activities.