Thailand's government has approved a draft law to regulate digital-asset-related transactions, The Nikkei Asia Review reported.
Under the new law, investors will have to pay 7% value added tax on all crypto trades, and a 15% capital gains tax on their returns.
Thai Finance Minister Apisak Tantivorawong said the new law to comprehensively regulate cryptocurrencies and digital tokens is necessary to prevent money laundering, tax avoidance and crime.
“The new law is not meant to prohibit cryptocurrencies, initial coin offerings (ICOs) and other digital asset-related transactions, but to protect investors,” said Mr Apisak.
The Bangkok Post quoted the Deputy Finance Minister Wisut Srisuphan as saying that while retail investors may be eligible to waive the VAT if they are trading through a cryptocurrency exchange after the law goes into effect, they will still face the liability if they have no capital gains from crypto trading.
Finance Permanent Secretary Somchai Sujjapongse said, in turn, that “the government does not plan to promote cryptocurrencies, but rather wants to support blockchain technology since it is has many benefits.”
Thailand's Finance Ministry and the Securities Exchange Commission are also developing an organic law that would require cryptocurrency exchanges, brokers and dealers to register with relevant authorities.