Thailand’s Former SEC Chief Is Against Potential Crypto Taxation

Tipsuda Thavaramara, former Deputy Secretary-General of Thailand‘s Securities and Exchange Commission (SEC), expressed her opposition to the government’s plan to levy a 15% capital gains tax on cryptocurrency revenues. She argues that such legislation is impractical, unjust, and harmful to the trade sector.

Thailand officials announced intentions earlier this month to apply a 15% capital gains tax on local cryptocurrency investors and miners. Digital asset exchanges would be immune from the prospective rules, according to the law. Nonetheless, the lawmakers did not go into detail, leading some to question the use-cases.

Tipsuda Thavaramara, a former top officer at Thailand’s Securities and Exchange Commission, is one of them. According to her, the possibility of crypto taxes lacks clarity and would not boost trade:

“Withholding tax also affects transactions as stores that accept cryptocurrencies must collect capital gains tax from customers.”

She went on to say that the Revenue Department’s decision is “unfair and impractical” because crypto exchange companies do not give consumers investment returns:

“Whether policies focus on the promotion of trade industry or not, the Revenue Department should collect taxes fairly under clear rules and practices.”

According to Thavaramara, countries such as Singapore, Australia, and certain European countries do not recognize cryptocurrency as a product and have eliminated the value-added tax (VAT) on trade. She asked Thailand’s leaders to follow suit.

The Bank of Thailand (BoT) announced intentions to put tough controls on the cryptocurrency business in 2022 at the end of 2021, as interest in the asset class grows.

The precise guidelines that the BoT wants to adopt are still unknown. Nonetheless, the bank’s Governor, Mr. Suthiwartnarueput, believes bitcoin and other cryptocurrencies have the capacity to thrive in the monetary system. However, he, like many others, emphasized that the asset class’s increased volatility remains a concern.

Prior to this, Thailand’s central bank advised local financial institutions to avoid cryptocurrency.

The Bank of Thailand was also concerned that widespread use of digital assets might impair the central bank’s ability to supervise the national economy.

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