Cryptocurrency Laws Come into Effect in Thailand
All cryptocurrency sellers are now required to register with the Securities Exchange Commission as new laws come into place in Thailand.
Those who sell unauthorised tokens will be fined no less than 500,000 baht (USD 15, 705) or no more than twice the value of the transaction and could face up to two years in jail. Fraudulent filings could attract a jail term of up to five years.
The cryptocurrency regulations came into force on Sunday after they were published in the Royal Gazette according to Bangkok Post.
The laws have been in the offing since at least March when they were approved by the cabinet. Finance minister Apisak Tantivorawong said it was necessary to curb money laundering, tax evasion and other crimes.
The Council of State had then been instructed to come up with a draft to be submitted to the cabinet.
The law was meant to protect investors and not prohibit initial coin offering or other digital asset transactions, the minister had then said. However, the central bank had warned financial institutions against getting involved in cryptocurrency transactions.
The Digital Amendment Act BE 2561, which has 100 sections mandates the Securities Exchange Commission to regulate the sector. The draft was amended severally before it become law.
According to the Bangkok Post, certain assets such as electronic data were removed. Sellers have been given 90 days to register with the body.
Cryptocurrency profits will be taxed at 15% according to the new law.
The SEC and the finance ministry is now expected to come up with more specific laws to operationalize the decree.
The commission will now be tasked with regulating initial coin offerings and overseeing cryptocurrency businesses. It will also set the registration fees for cryptocurrencies as well as their operators.
It will also come up with a mechanism for resolving potential problems in the future.
Unlike many countries Thailand has been supportive of the sector but has been lacking in terms of regulations.