Generally, for any finance regulation in Thailand, a controversial law known as Section 44 is mandated. But the regulators of Thailand have met and come to a conclusion for framing a new law and not invoking the controversial Section 44.
This came right after press release of the Thai Deputy Prime Minister expressing the regulators to frame a new law for the transactions involving cryptocurrency and ICO to be formulated within a month. It is a norm in Thailand for Securities and Exchange Commission of Thailand [TSEC] to act as the regulator for all finance related domain and cryptocurrency is not an exception to this.
The issued statement says:
“The special law will regulate the purchases and sales of cryptocurrencies and ICOs in order to avoid market manipulation, money laundering, tax evasion, as well as multi-level marketing schemes.”
It has been finalized that TSEC shall be in charge of governing the new law that is to be enacted to regulate all areas of cryptocurrency. This news was made official by Mr. Rapee Sucharitakul, Secretary-General of the TSEC.
This special law shall address all areas of cryptocurrency including rules and regulations on ICOs, rules for the parties involved such as the investor, middleman, issuer and trading platforms. The new law will make sure that market manipulation, tax evasion, and multi-level marketing schemes are averted.
The Thai Minister of Finance, Mr. Aphisak Tantiworawong expressed the fact that digital currencies shall be brought under taxation. The country’s Department of Revenue is thinking of possible ways of mandating taxes on digital currencies and is awaiting the results of the study being made by four units in charge of drafting the law.
The four units are TSEC, the Anti-Money Laundering Services [AML] Office, the Bank of Thailand, and the Ministry of Finance.
The Thai BPS reported:
“The deputy prime minister in charge of legal affairs has made clear that Section 44 which empowers the prime minister to have absolute power to make final decision on all problems will remain in force although the country will have the new constitution in use”
The regulators in Thailand are concerned about the rapid growth of cryptocurrencies and ICO market over the past financial year and have suggested to necessarily implement Section 44 for regulating the industry.
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