Thailand has suspended the implementation of its 15% crypto capital gains tax. Although the proposal was made earlier in the year, it was met with opposition. However, some form of crypto tax will be continued to be implemented.
According to The Financial Times, Thailand is not going ahead with its 15% cryptocurrency tax plan because traders opposed it strongly. Tax officials stated that capital gains are taxable for those who earn profits from cryptocurrency mining or trading.
After witnessing a significant increase in cryptocurrency trading’s value and size in 2021, the Thai Revenue Department wanted to tighten its oversight. Industry stakeholders warn that taxation could hinder the sector’s future growth.
In January, the Thai Finance Ministry announced that it would tax crypto markets. However, this was considered to be difficult practice. It wasn’t clear, for instance, if taxes would be levied based on annual reports or if the government would force exchanges deduct them from the source.
Related:Thailand will define the’redlines’ for crypto early 2022
The Bank of Thailand, Ministry of Finance and Securities and Exchange Commission announced last week that they would provide regulations for certain digital assets that are not in danger of the financial system.
Governments are focusing on cryptocurrency regulation in three areas: taxation, investor protection and anti-money laundering. The asset class has seen a substantial increase in adoption due to DeFi and NFTs in recent years.
Many countries, including South Korea, are considering taxing the cryptocurrency market. South Korea delayed its crypto tax plan to 2023 after much resistance.