Thailand has abandoned its intentions to implement a tax on Bitcoin and cryptocurrency trading and this has made local traders breathe a sigh of relief.
The tax on Bitcoin trading in Thailand
As reported by the Financial Times, the idea was to apply a 15% tax on crypto transactions but this option raised so much controversy that the relevant authorities had to backtrack. However, traders are still obliged to declare capital gains from trading and mining activities.
However, for local traders, times are certainly not going to be easy. A week ago, it was announced that a regulation for payments with digital assets will soon be enacted and this will obviously also affect cryptocurrencies. The aim is to restrict the use of crypto payments, which according to local authorities does not benefit the consumer. There remains a determination to continue to pursue financial innovation, for example by investing in blockchain.
Taxes and cryptocurrencies
The topic of taxes and cryptocurrencies plagues investors around the world. Because it is an industry that is now more than 10 years old and yet it is still very deregulated.
In addition, stakeholders argue that the imposition of taxes would slow down the development of the sector, a consideration that clashes with lawmakers who instead see cryptocurrencies as a new source to access to replenish the coffers of the state.
In Italy, for example, cryptocurrencies are treated as foreign currency. Capital gains are taxed, with a levy of 26% on amounts exceeding 51,000 euros.
In the United States, instead, the approval of the Infrastructure Bill has ignited a harsh institutional clash. The Biden administration wants to know all crypto transactions in order to tax them and finance its gigantic infrastructure plan, but identifying the operators of a decentralized sector is not an easy thing to do.
The balance is obviously in the middle and it’s impossible for a sector that has reached 3,000 billion in capitalization to escape the eyes of the tax authorities.