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The Kingdom of Thailand is tightening regulations for miners and introducing a capital gains tax on cryptoasset transactions.
While the Kingdom’s Ministry of Tourism is trying to stimulate the nascent crypto industry, attract crypto asset owners to the country and revive the coronavirus-affected tourism industry, these efforts are being thwarted by the government, which intends to further tighten regulation of cryptoasset transactions.
According to a Bangkok Post source in the Thai Ministry of Finance, from January 2022, a new 15% capital gains tax will be introduced on all cryptocurrency transactions for private traders.
From this point on, participants in the cryptocurrency market who profit from mining and other operations with cryptocurrencies are considered the beneficiaries of cryptocurrency transactions. Profit is recognized as income and is taxable. Miners will suffer more traders, since the initial cost of mined coins is virtually zero, and it will be more difficult for them to prove the costs.
At the same time, the new tax will not apply to institutional investors and cryptocurrency exchanges that are exempt from it. Perhaps the special approach is due to the fact that some of the cryptocurrency exchanges in Thailand are directly associated with the country’s business elites, who received temporary tax preferences from the government.
The Central Bank of Thailand is expected to release a financial landscape advisory document in early 2022 that will articulate its vision for what it calls the “red lines” in the crypto industry. The new rules will aim to minimize risks to Thailand’s financial system and protect investors’ rights.
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