According to the Bangkok Post, Thailand’s Securities and Exchange Commission (SEC) is intending on changing regulations governing digital assets next year as it recognises the need to continually reinvent laws to keep up with global financial markets. Laws pertaining to digital assets in Thailand are currently detailed under the royal decree which came into effect in May 2018.
Covering “cryptocurrencies, digital tokens and any other electronic data unit”, the decree states that it is mandatory for any businesses involved in crypto-related services or transactions to obtain licenses from the SEC or Finance Ministry. At present, the SEC has issued licenses to five crypto exchanges, and only Bitkub and Satang Pro are still operating. BX shut down abruptly in September this year, while Huobi Thailand and Bitherb are slated to begin its operations soon.
Thailand’s Finance Ministry has also approved three ICO portals which are not yet available to customers, namely Longroot, T-Box and SE Digital.
It is very costly for businesses to operate in any form without obtaining the necessary licenses. They will face legal repercussions such as fines, and even a jail term for a maximum of two years.
Ruenvadee Suwanmongkol, Secretary-General of the SEC, noted that it is imperative for authorities to amend regulations as new digital assets emerge so as not to hinder businesses in the industry from developments that can help them stay relevant and competitive on a global scale. However, the SEC also needs to consider the prevention of fraud and scams in the industry by people seeking to take advantage of digital assets to begin or further criminal activities.
Digital asset investors face a 7% value-added tax (VAT) on their transactions, with exceptions made for retail investors who trade on licensed exchanges. Investors are also liable for a 15% withholding tax on returns and gains as a result of any crypto-related investments.
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