• Sat. May 21st, 2022

Are the authorities trying to control the uncontrollable?

ByHazel R. Lang

Apr 12, 2022

Take for example the recent rule change published in 2021. The Securities and Exchange Commission (SEC) prohibits certain tokens from being listed on licensed exchanges. These are: the tokens themselves; fan tokens; NFTs and tokens issued by an exchange cannot be listed on the same exchange.

This caused a stir within the industry as this ban may raise many uncertainties and limit the growth of digital asset operators.

For example, it is unclear what is considered a “meme token” because some may just be in the development stage and they are not meaningless, or tokens issued by exchanges have already been created and this creates a uneven field for newcomers.

Not to mention, why NFTs go unlisted is still confusing to those involved.

These prohibitions, therefore, may lead Thai exchanges to be less competitive than foreign exchanges in terms of product offerings.

To top it all off, at the end of last year, the tax authorities reminded those affected to report and pay any taxable income from cryptocurrencies based on the 2018 decree.

The Revenue Department is well aware that further clarification is needed, such as how to calculate capital gains from trading or when to count as having gains from farming or crypto mining. -currencies.

After receiving industry feedback, a handbook clarifying these issues was released in January 2022. Additionally, recently, a regulation was released to allow the deduction of trading losses on approved stock exchanges for individuals, and it there will be a follow-up on related topics. laws for clarity, for example VAT may be exempt for transactions on approved exchanges.

Furthermore, in response to the increasing cooperation between commercial industries and digital asset operators to use cryptocurrencies as a means of payment, authorities are very concerned about financial stability, as other units of account may prevail. on the baht.

Therefore, the authorities plan to issue a regulation, starting April 1, to prohibit digital asset operators from not supporting the use of digital assets as payment, which includes restrictions on the provision of systems supporting such activities.

Cryptocurrency regulations are still being developed and are constantly adapting to developments in the digital asset industry.

To support the growth of Thai digital asset operators and allow them to compete in the global market, regulators may consider incentives and fewer restrictions to make Thailand a hub of activity, given that we we have the demand from investors and the preparation of the players in our country. .

It is always important to note the balance between the business opportunities of the emerging digital asset industry and concerns about government control or investment risks in which authorities, digital asset operators and investors will contribute to shaping the tone and its movement.

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