Thai Government Threatens Jail Time and Fines with New Cryptocurrency LawMay 15, 2018, 12:31PM
Thailand's government has passed official legislation for cryptocurrency regulation. Offenders will be subject to fines and potential jail time.
As of this Monday new regulations have come into effect within Thailand's borders. Monday's official action marks the enforcement of legislation proposed by the Thai Finance Ministry in February. The new law designates the Thai SEC as the legal body responsible for cryptocurrencies and requires all sellers to register with the SEC within 90 days. Offenders will now be held accountable for both fines and jail time tied to unauthorized business and fraudulent activities.
The Thai Finance Ministry's initial proposal in February was backed by a further comment from Minister Apisak Tantivorawang a month later. Regulation in Thailand will not only provide stability to the industry, but check money laundering, tax evasion, and other criminal activity. This judiciary position is one that may be matched by other Asian nations. Per the Straits Times, offenders will be held to the following standards:
- Unregistered token brokers will face up to two years in jail and fines twice the value of tokens (capped at 500,000 baht).
- Fraudulent activities liable to up to five years in jail.
- Unauthorised business jail time ranges between two and five years with fines up to 10,000 baht per day of operations.
There is an additional, unconnected 15% capital gains tax on all digital transactions. All legislation is targeted at cryptocurrency - defined as digital assets and digital tokens. This includes a removal of some assets initially proposed by the Finance Ministry like electronic data.
Thailand is among the first countries to clearly outline regulation surrounding the cryptocurrency market. It offers respite from the growing trend of self-regulation among industry leaders. Other national counsels have admitted to an inability to keep pace with technological change, but the Thai Finance Ministry established the necessary momentum for legal change.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.