Thailand is one of the few countries in the world which has openly embraced cryptocurrency and taken concrete steps to adopt blockchain technology. The positive attitude of the government has worked in favor of digital assets with crypto emerging as a preferred medium of transactions among countrymen. The regulatory framework adopted by Thailand has also bode well for the crypto adoption while the proactive role adopted by the securities watchdog of the country is been commended by crypto experts around the globe. Just so you know, the Thai Securities and Exchange Commission (Thai SEC) is the government body in Thailand entrusted with the responsibility of making the rules and regulations for the cryptocurrencies in the country.
New Cryptocurrency Approval
In a recent decision involving the approval of cryptocurrencies, Thai SEC has allowed four cryptocurrencies to come up with initial coin offerings (ICOs), thereby updating the list of eligible cryptocurrencies in the country. The newly approved cryptocurrencies are Bitcoin, Ripple, Ethereum, and Stellar. All these cryptocurrencies can now operate in Thailand’s cryptocurrency exchanges. Also, the Thai SEC has removed the other three cryptocurrencies from the list of eligible digital coins. The name of three cryptocurrencies which are removed from the list includes Bitcoin cash, Ethereum Classic, and Litecoin. These cryptocurrencies will no longer remain part of the digital coins trading in the country.
Divulging into the details about the parameters used for permitting the new cryptocurrencies to operate in the market, the exchange said that it had taken cognizance of the news and development related to these cryptocurrencies besides considering how these coins are going to affect the future of the digital assets. The exchange also said that along with these considerations, it has gone much deeper into the various important parameters related to cryptocurrencies before giving them the final permission to operate in the country.
Of note is the fact that Thai SEC has made it absolutely clear that in no way this certification should be considered equivalent to a status of legal tender for these cryptocurrencies. SEC also said that the current investors would not get affected by the update in the list as till date, no ICO has been launched in the country. Further, no crypto exchange operating in Thailand have ever used the Bitcoin Cash, Litecoin, Ethereum Classic as trading pair and therefore, the decision to ban these cryptocurrencies will not have any negative impact on the overall market.
Crypto Adoption in Thailand
Thailand is witnessing a surge in the number of cryptocurrency users and keeping in mind the growing interest; the country had recently amended its Securities and Exchange Act. The amendment allows the companies to make use of the blockchain for the issue of tokenized securities. The changes in the legislation passed by the government will come into effect later this year. In order to give a boost to the cryptocurrency market, the government had already done away with 7% value-added tax (VAT) imposed on the cryptocurrency trading last year. This recommendation was approved by the Securities and Exchange Commission of the country; however, individual investors and private companies dealing in cryptocurrencies are liable to pay income tax for the crypto transactions.