Thailand’s revenue department has abandoned a plan to impose a 15% withholding tax on crypto transactions, according to the Financial Times. The news comes amid opposition from traders in the country.
The new approach allows crypto-traders in Thailand to offset their annual losses against gains that have been made in the same year.
The news has been welcomed by crypto enthusiasts, including Pete Peeradej Tanruangporn, chief executive of crypto exchange Upbit.
“The revenue department did a lot of homework and reached out to crypto operators as well to get feedback. It is much more friendly to both investors and the industry,” he said.
Thailand and crypto
The news comes following efforts by Thailand to attract crypto investors to the country.
In November 2021, the Tourism Authority of Thailand (TAT) pivoted to “crypto millionaires” as a means of boosting the country’s pandemic-hit economy.
TAT governor, Yuthasak Supasorn, told Bloomberg that people who have “become wealthy from holding digital currencies” may be looking to spend their holdings. He added that “if they can use their currencies here without having to exchange it, or be faced with government taxes, then it would create convenience for them.”
Last week, however, the Thai Securities and Exchange Commission (SEC) said it planned to issue guidelines surrounding the restriction of digital currency payments.
The Thai SEC has also previously clamped down on crypto exchange Binance.
In June 2021, the regulator filed a criminal complaint against Binance for operating a digital asset business without a license.
What about DeFi?
The Thai SEC is also taking aim at the $197 billion world of decentralized finance (DeFi).
In June last year, the regulator said DeFi projects could require a license to operate in the jurisdiction.
“The issuance of digital tokens must be authorized and overseen by the Securities and Exchange Commission and the issuer is required to disclose information and offer the coins through the token portals licensed under the Digital Asset Decree,” the SEC was quoted as saying at the time.