Connect with us


Cryptocurrency-tax ‘will hit economy’



New tax measures aimed at curbing the Thai initial crypto-coin offering (ICO) market will adversely affect the economy as the measures could drive investors and entrepreneurs overseas, according to experts.

The Royal Gazette this week announced a new set of laws related to digital asset businesses, an amendment of the Revenue Code to regulate and impose high taxes on transactions. It also warned of tough punishments over illegal conduct in the digital economy.

The digital asset law authorises the Securities and Exchange Commission (SEC) to regulate transactions involving cryptocurrencies and digital tokens.

SEC secretary general Rapee Sucharitakul said yesterday that the new taxes and legal requirements would protect local investors who were assumed to have specialised knowledge on ICOs.

ICOs were for niche investors, not general investors who could be financially damaged if not well informed, he said.

The SEC is preparing to issue new ICO regulations based on the new digital assets law within the next 2-3 weeks.

It is empowered to regulate all digital assets but Rapee said that utility tokens might be exempt from the SEC requirements.

However, all exchanges that trade digital assets must be registered with the SEC within 90 days after new regulations are effective. Even ICOs launched prior to the new rules are required to seek approval.

Cryptocurrency-tax ‘will hit economy’ | News by Thaiger

The authority is hoping the new regulations will both promote the new sector as well as protect investors from fraud and cheating, he said, adding that the SEC and Revenue Department would hold a joint press conference today to clarify all issues.

The authority would also give the public a full month to submit opinions so that it would be best placed to handle the cryptocurrency sector in a practical way, he said.

However, Duenden Nikomborirak, of the Thailand Development Research Institute (TDRI), said the tax measures were not favourable for the Thai digital economy and tech start-ups.

Overall, the policy would drive Thai entrepreneurs and investors to Singapore, where there are no taxes on ICOs, she said.

Thai ICOs are now subject three taxes – 15 per cent capital gains tax, 7 per cent VAT and another 20 per cent corporate income tax – so there is no chance for Thai start-ups to grow to be “Unicorn” or a start-up worth US$1 billion or more, said Duenden.

Therefore she called on the government to review the tax measures to take into account all the risks and rewards.

According to the new amendment, revenue and capital gains from cryptocurrency and digital token transactions must be taxed.

Prinn Panitchpakdi, managing director of CLSA Securities (Thailand), also said that the Finance Ministry’s tax measures would likely kill the Thai ICO market even before it had a chance to become established.

This would prompt Thai firms to launch ICOs in other countries and deprive the country of new funding opportunities, he warned.

Other sources said the tax measures would lead to an outflow of investor funds from Thailand, while the country’s security exchanges would not be able to compete with those in other countries.

They said that not only would VAT and income tax hit investors and issuers but they appeared to be redundant measures. Critics also feared the policy would negatively affect the digital economy and innovation.

However, Pawoot Pongvitayapanu, chief executive officer and founder of, said the new law made several issues clearer and would help prevent money-laundering and other illegal activities.

Teerachart Kortrakul, an investor and founder of StockRadars, said many Thai investors were already trading cryptocurrencies abroad so they would not be affected.

STORY: The Nation


Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

The Thaiger is Thailand's largest online portal for news, videos and information.

Follow Thaiger by email:

What you get for $X46 mins ago

What $100,000 buys you for a condo in Bangkok, Phuket, Pattaya, Koh Samui and Hua Hin

Thailand2 hours ago

Thailand News Today | Activists plan protests all across Thailand

Thailand3 hours ago

Snitching on parking space hoggers could earn you 5,000 baht in Thailand

Sponsored11 hours ago

10 Best Seed Banks that Ship Cannabis Seeds Discreetly to You (Free US Shipping)

Weather3 hours ago

Storm Noru weakens from typhoon to depression as it moves across Thailand

World4 hours ago

Suicide bombing in Afghanistan hits students preparing for exam

Politics5 hours ago

BREAKING: Prayut reinstated as Prime Minister of Thailand

Join the conversation on the Thaiger Talk forums today!
Technology5 hours ago

What role for Thailand in China’s great European EV invasion?

Cambodia5 hours ago

Cambodian delegation in UK to seach for stolen treasures

Thailand5 hours ago

20 baht notes printed with errors, says Bank of Thailand

Crime6 hours ago

Loan shark bombs debtor’s house in southern Thailand

Thailand6 hours ago

Thai researchers develop flood-resistant rice strain

Press Room6 hours ago

Southeast Asia’s hospitality leaders step into the ring to fight for sustainability at PHIST 5

Crime6 hours ago

Horrified relatives attempt ID of disfigured suitcase victim

Travel6 hours ago

Things to do in Bangkok that cost next to nothing (2022)

Travel7 hours ago

5 best spa treatments in Bangkok to pamper yourself this September – October

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11