Thailand Introduced Legal Framework, But Players Don't Know How to Comply

On Sunday, May 13, Thailand joined a pool of countries that have introduced regulatory frameworks regarding cryptocurrencies.

The 100 section law, published in the country's Royal Gazette, defines cryptocurrencies as digital assets and digital tokens that fall under the regulatory jurisdiction of the Thai Security Exchange Commission, making it the main policeman of crypto transactions in the country.

TSEC is in chargeThailand's government has been discussing the idea of a regulatory framework since last February, when Veerathai Santiprabhob, governor of the Central Bank of Thailand asked all banks in the country to halt all cryptocurrency affairs before the corresponding laws are introduced.

Finally, as reported by The Bangkok Post, Thai Finance Minister Apisak Tantivorawong echoed their statements as the law was finally introduced on May 13, saying that the new measures are not intended to prohibit cryptocurrencies or ICOs in the country.

As local media outlet Matichon states, under the new law, the TSEC will become responsible for regulating digital asset businesses, setting the fees and requirements for the registration of cryptocurrencies, issuing guidelines regarding potential problems and dealing with other areas related to crypto that have not been specified in the document.

The situation remains unclear, as local companies and exchanges are only preparing to register with the SEC. The regulatory framework isn't exactly ready, either - according to the Bangkok Post, within the next month, the Finance Ministry and the SEC will work on organic laws requiring all digital asset transactions to be registered with relevant agencies.

J Ventures, a subsidiary of Jay Mart Plc which is listed on the Stock Exchange of Thailand and the first company in Thailand to launch a successful ICO, will meet with the SEC on Friday, May 18 to discuss the new regulations.

"If the government has the legal authority to curb digital , they should have an organisation to help trading - whether the country has an official digital exchange with high standards like the SET or Market for Alternative Investment or not".

As local media reported, the Bank of Thailand, the entity that previously prohibited other banks in the country from engaging in crypto activities, is also on the list of players awaiting more detailed regulations from the TSEC. Thus, the BOT reportedly says that it will wait for the TSEC to clarify its position on regulations before it will come up with its own stance on cryptocurrencies and ICOs.The new tax section seems puzzling as wellAccording to the new law, all crypto trades are subject to a 7 percent value added tax, as well as a 15 percent capital gains tax on returns.

"At the moment, they just announced the law without the clear way of how to do things yet. We need to wait for the SEC to announce more details."