The Cabinet of Thailand has approved a decree draft to regulate cryptocurrencies and digital tokens, Nikkei Asian Review reported.
Under the new laws, investors will have to pay 7 percent value added tax (VAT) on all cryptocurrency trades, and a 15 percent capital gains tax on returns.
Deputy Finance Minister Wisut Srisuphan explained that if retail investors trade digital assets through exchanges, they would be exempt from paying the VAT. However, if their trades produce no capital gains, they would be liable to pay the VAT.
According to the details provided by Bangkok Post, the draft, proposed by the Finance Ministry, was reviewed by the Council of State before it got approval from the cabinet.
The decree would be enforced once it is published in the Royal Gazette, Finance Minister Apisak Tantivorawong said. He said that the new law is not intended to prohibit cryptocurrencies, initial coin offerings (ICOs) and other digital asset-related transactions, but to protect investors and prevent money laundering, and other illicit activities.
Earlier in February, the Bank of Thailand asked domestic and foreign banks, credit card companies, and other financial services companies not to engage in any transaction involving cryptocurrencies.
