Thailand is looking to enforce its own version of regulation regarding cryptocurrencies. That is much easier said than done, as this new form of money doesn’t adhere to existing guidelines. As was to be expected, thenew regulations oncryptocurrencies and ICOsare rather strong. In fact, anyone violating these laws faces major fines and even jail sentences.
Although the cryptocurrency regulation in Thailand may sound severe, it is not all that bad when people stick to the basic rules. Bitcoin and altcoins will not be banned, and trading will not be prohibited under any circumstances. That in itself is a pretty positive development, consideringthat China has taken a completely different approach in this regard. An all-out ban on cryptocurrency trading in Thailand was considered one of the many possibilities until this Monday.
The new rules statethat both cryptocurrencies and digital tokens – such asthose issued through ICOs – are considered digital assets.That brings a lot more legitimacy to this industry as a whole and serves as an important first step toward making ICO tokens, Bitcoin, and altcoins a lot more appealing to the general public. Whether or not this regulationwill actually do so remains to be seen, but it is a positive approachnonetheless.
As one would expect, the Thai SEC will oversee thesematters for the foreseeable future. Additionally,it will ensure that all users’ identities are verified in a proper, secure, and legal manner. This seemingly puts an end to anonymous cryptocurrency trading in Thailand, although that doesn’t have to be a bad thing. Those users who prefer anonymity and privacy will have to look fornew solutions moving forward, though.
The main purpose of classifying these currencies as digital assets is to curb money laundering, tax avoidance, and crime. Most people are well awarethat ICO tokens and cryptocurrencies have apoor reputationglobally, and that situation will not improve until all loopholes are eliminated. The Bank of Thailand had attemptedto do so by simply banning all cryptocurrency transactions, although it seems that decisionwas sincereversed.
Underthe new royal decree, severe punishment will be enforcedagainst anyone who attempts to engage in illicit behavior. Unregistered token brokers will need to register with the government or face a jail sentence of up to two years. Additionally, the government will impose fines of at least two times the value of the tokens in question, up to a maximum of 500,000 baht. Fraudulent filings will lead to a five-year jail term.
Surprisingly, the government is also cracking down on so-called account sharing. Anyone letting others use their accounts for transactions can be jailed for up to one year and face a major fine. Therewill also be a 15% digital gains taxon all transactions, which is the least favorable decision of them all. Even so, this is in line with a lot of other countries. This is an interesting development in Thailand, and one that seemingly benefits cryptocurrency as a whole.