Thailand Becomes the Latest Country to Tax Cryptocurrencies
It is evident the cryptocurrency industry has sparked many debates regarding the future of money. Thailand has always been an interesting country when it comes to regulating this new form of money, as there seems to be no streamlined approach. That is coming to change, as the nation's military regime wants to begin taxing cryptocurrencies in the near future.
INTRODUCING BITCOIN TAXATION IN THAILAND
For most people, it will not come as a big surprise to learn some countries are leaning toward taxing cryptocurrencies. This also means these countries will need to recognize Bitcoin and altcoins as a form of legal tender, as they cannot be taxed under any other circumstances. That aspect alone is well worth keeping an eye on in the future.
One of the more interesting examples in this regard is Thailand. The Asian nation has a military regime which has been quite vocal about cryptocurrencies in the past. At one point, it almost seemed as if the use of Bitcoin would become illegal in the country, although things never got to that point. Instead, it appears the regime is suddenly looking at cryptocurrency in a completely different manner.
According to Nikkei, Thailand will begin taxing cryptocurrencies in the country. This is a pretty interesting development, even though not everyone will agree with it. Taxing cryptocurrencies is a double-edged sword, as it automatically lends more legitimacy to this nascent form of money. There is no turning back once such a decision is made.
Based on the information provided to us, it seems all cryptocurrency trades will be subject to a flat 7% value-added tax. Additionally, there is a 15% capital gains tax on returns for specific investments. That is a pretty steep amount, but it is also a positive sign for the future of cryptocurrency in Asia.
In a way, this is still a rather conservative approach. While the taxation of Bitcoin and altcoins is always subject to some controversy, it goes to show a lot of governments are looking at cryptocurrency in a completely different way these days. Whether or not this trend will extend to other countries in the region remains to be seen.
While this development is intriguing, the future of the cryptocurrency industry in Thailand remains in doubt. More specifically, there are still a fair few growing pains to take into account, especially when it comes to ICOs and other ways of raising money. At the same time, this new measure will help create a more viable ecosystem for all parties involved.