Thailand Scraps Plans to Tax Bitcoin, Crypto Transactions – TheStreet

Thailand has reportedly scrapped plans to impose a 15% withholding tax on crypto transactions following a surge incryptocurrency trading.

Earned income on crypto trading or mining can be reported as capital gains on income taxes, tax authorities said Monday, according to the Financial Times.

The new rules, outlined in a manual published by Thailands revenue department, will also allow traders to offset their annual losses against gains made in the same year.

The revenue department did a lot of homework and reached out to crypto operators as well to get feedback, said Pete Peeradej Tanruangporn, chief executive of Upbit, a crypto exchange, and co-chair of the Thailand Digital Asset Operators Trade Association. It is much more friendly to both investors and the industry.

The Bank of Thailand, the countrys Securities and Exchange Commission, and its finance ministry last week announcedplans to issue regulatory guidelines to restrict digital currency payments.

Digital assets have fast gained momentum in Thailand over the past couple of years, with average daily trading surging to 4.8 billion baht ($143.8 million) from just 240 million baht,Ekniti Nitithanprapas, director-general of the ministrys revenue department, according to Reuters.

Last week, Indonesia's Financial Services Authority warned that financial firms are not allowed to offer and facilitate sales of crypto assets amid a boom in crypto trading in Southeast Asia's largest economy.

The authority saidthat the value of crypto assets often fluctuates and that people buying into the digital assets should fully understand the risks.

Bitcoin prices turned higher Monday, rising 2.3% to $38,444 following heavy losses that hit the cryptocurrency sector. Bitcoinset an all-time high of $69,044.77 on Nov. 10.

"While the sell-off in Bitcoin has been relatively muted going into this week, the outlook for the cryptocurrency market as a whole remains negative with heavy losses seen across a range of once-popular altcoins," saidNicholas Cawley, Strategist at DailyFX. "If the market as a whole is looking to Bitcoin to lead the way higher, it is most likely to be disappointed as BTC struggles with nearby resistance."

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Thailand Scraps Plans to Tax Bitcoin, Crypto Transactions - TheStreet