- Thailand SEC is concerned about how crypto regulations might impact crypto businesses.
- The regulator is studying the situation, with plans to make necessary changes by next year.
- Meanwhile, the SEC continues to rely on the royal decree that handles taxes, allowed crypto-related firms, and other rules.
The Thailand SEC (Securities and Exchange Commission) is looking into potential problems that the crypto regulations might pose for crypto businesses within the country. The SEC’s Secretary-General, Ruenvadee Suwanmongkol, stated that regulators need to keep the rules flexible, as well as applicable in the crypto market environment.
The SEC is very likely to find some aspects that are preventing the businesses from achieving their full potential, and all necessary changes to the regulations will likely take place by 2020. The SEC also shared that its goal is to help the virtual assets grow and protect investors at the same time.
The Secretary-General further added that the laws must remain up to date, and always meet the market requirements for the emerging crypto products. Naturally, this is pretty difficult due to the shifting nature of cryptocurrency and the crypto market itself.
Thailand previously brought the royal decree, which was in effect since May 14th of this year. The decree brought four categories of secondary trade intermediaries, including ICO portals and dealers, crypto exchanges, brokerages, and token platform service providers.
Thailand SEC only approved a few firms
According to Suwanmongkol, there are numerous firms that wish to become crypto developers, but digital currencies and ICOs can only be available on ICO portal companies which the SEC approves. As for other companies, Thailand’s SEC only approved five exchanges so far, in addition to three brokerages, but only one that can serve as an official digital asset dealer.
All companies that try to act as sellers without the proper authorization will be fined, according to the royal decree. The fine will be at least 500,000 baht (around $16,500), or twice the value of the electronic transaction. However, it should also be noted that the fine may include up to two years in prison.
The decree also handles the taxes, with investors who engage in crypto trading having to pay a withholding tax (15%) and a value-added tax (7%) on capital profits and returns. VAT won’t be necessary for those who trade via crypto exchanges. Those who do not make capital gains will have to pay only for VAT.