With cryptocurrency taking up the worldwide market by storm, many nations have become interested in this technology. In the last two weeks, three national government have been trying to establish, analyse and regulate project with a primary focus on tax policy.
Cryptocurrency technology being in the spotlight, many Asian countries have turned to adopt cryptocurrency into their market but with certain rules that cryptocurrency traders need to follow while reporting their profit or losses while certain countries are still at the beginner stage. Certain governments have also reduced tax burden on the companies who are into the business of trading and exchanging cryptocurrencies with an indirect hope that they will set up businesses in these countries but it might still take some time to clarify and finalise the rules and regulations regarding the cryptocurrencies.
Taxation in Thailand
Recently on March 27th, after the weekly cabinet meeting, the military-led government announced the plans to tax cryptocurrency investors. Finance minister of Thailand, Apisak Tantivorawong, stated that the plan is meant to keep the financial structure from getting exploited through the hands of money launderers, trying to get away with tax or taking part in any other criminal affairs.
According to the plan, the crypto-investors have to pay the government 7% of the value of the cryptocurrency for VAT (1) and a 15% capital revenue tax on cryptocurrencies transactions. This initially delighted the Thai investors and companies raising funds but later on in February, the Bank of Thailand banned all the local banks from trading or investing in the cryptocurrencies. Thereafter all the companies and startups trying to raise funds through cryptocurrency initial coin offerings (ICOs) have moved from Thailand to cryptocurrency investment friendly Singapore.
The Thai Blockchain Association had request certain alteration in the bill regarding some of the tax burdens but in vain. The bill includes rigid KYC (know-your-customer) procedures and will also collect the user’s identification data.
Philippines Special Zone
According to Reuters reports, The Philippines government is taking an opposite approach in which the government would allow 10 cryptocurrency startups (start-ups includes ICO platforms, Miners and Exchanges) to initiate operations with lower tax level in a special economic zone but in return the start-ups need to invest into the nation’s economy for the next 2 years. As the time passes by $1 million investment will overcome the $100,000 licensing fee.
Abu Dhabi Feedback
The global market’s financial services regulatory authority of Abu Dhabi has recently disclosed their proposed rules and regulations related to cryptocurrency trading and investment. There is no properly written policy as of now. The authority is currently looking for feedback from the members of industry regarding the framework.
According to certain stipulations, the framework of the act outlines consumer protection, anti-money laundering, anti-terrorist financing, technology governance and better and safe custody rules and regulations. The proposed act also includes Spot Cryptocurrency assets.
In the month of March, a temporary order was issued by the Secretary of State Division of North Carolina regarding a permanent discontinuation against Power Mining Pool.
Authorities claimed that Power Mining Pool breached the State’s Security Act and used dangerous selling tactics. The authorities also stated they were allegedly mining one of the various cryptocurrencies by selling certain shares in bitcoins.