Thailand will reportedly not proceed with its 15% cryptocurrency tax plan after traders in the nation expressed strong opposition, according to The Financial Times. On income taxes, tax officials said that earned profits from cryptocurrency trading or mining are taxable as capital gains.
The Thai Revenue Department had intended to tighten oversight of cryptocurrency trading after seeing a substantial increase in the size and value of the market in 2021. However, industry stakeholders have issued dire warnings that heavy taxation may stifle the future development of the nascent sector.
The Thai Finance Ministry first announced its intention to tax the crypto market in January, but it was considered difficult in practice. For instance, it wasn’t clear if the taxes would be levied on yearly reports or whether the government will force exchanges to deduct them at the source.
Related: Thailand to define ‘red lines‘ for crypto in early 2022
Last week, the Bank of Thailand, Ministry of Finance, and the Securities and Exchange Commission announced that they will provide regulations for particular digital assets that do not endanger the financial system.
In terms of cryptocurrency regulation, governments are focused on taxation, investor protection, and anti-money laundering. Because of DeFi and NFTs, the asset class has experienced a significant expansion in terms of adoption in recent years.
Several nations, particularly South Korea, have been considering how to tax the cryptocurrency market. After a lot of resistance, South Korea has delayed its crypto tax plan until 2023.