Thailand writes two new laws in order to simplify the classification of cryptocurries; currencies if they are used as a means of exchange and digital tokens (securities) if they give investors the right to invest in a project/business.
Thailand has decided to write in two new laws this year which defines cryptocurrencies as both currencies and securities depending on the use case. The new laws are called the Digital Asset Business Operation and Thai Tax Ramifications.
In order to be considered a cryptocurrency, it must be used as a medium of exchanging goods and/or services. Digital tokens, securities, give investors the right to invest in a project/business or identifying rights to obtain certain goods and services. In addition, any gains from buying and selling both cryptocurrencies and digital tokens are subject to Thai income tax as if it were ordinary income.
No matter what regulators do, investors and nonbelievers, will not be 100% happy with any decision made. Crypto enthusiasts will say it shouldn’t be regulated at all and the other side will not want to give the space any credibility. Although in many cases, a good compromise occurs when both sides feel they have a bad deal.
In many countries, regulators don’t want to “drop the hammer” because all of the investors will go overseas. While at the same time, they can’t be too lenient. This is a difficult task for not only for Thailand’s regulators, but regulators across the world. Maybe other countries can learn from what Thailand is doing and in the near future hopefully there will be more clarity for investors worldwide.
At the end of the day, any regulation is a win for cryptocurrencies because it validates the space.