Thailand : Enact “Special Law” for Cryptocurrency
Thailand’s Deputy Prime Minister, has announced for a special law to be formulated for the transactions involving cryptocurrencies and initial coin offerings within a deadline of a month. The concerned authorities also decided to not intervene with or amend the already existing Section 44 law, which is otherwise mandated in case of any financial regulation in Thailand.
But what is Section 44?
Section 44 of the Interim Constitution of 2014 empowers the National Council for Peace and Order (NCPO) to issue an order to reform any fields.
As per the statement issued for special laws for cryptocurrencies:
“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.”
Mr. Rapee Sucharitakul, Secretary-General of the Securities and Exchange Commission of Thailand (TSEC), disclosed that from now on, TSEC will be in charge of governing the new laws related to cryptocurrencies.
This law will also regulate Initial Coin Offerings (ICOs) including providing rules on parties involved in token sales such as investors, middlemen, issuers, and trading platforms.
The Thai Minister of Finance, Mr. Aphisak Tantiworawong expressed that the country’s Department of Revenue is considering to bring digital currencies under taxation and is currently awaiting the results of study being made by four units in charge of drafting the law.
The four units mentioned above are:
- Securities and Exchange Commission of Thailand (TSEC),
- The Ministry of Finance,
- the Anti-Money Laundering (AML) Office,
- And the Bank of Thailand.
Since the rapid growth of cryptocurrencies and ICO’s in the market over the last financial year, the Thai regulators have suggested to necessarily implement the Section 44 for this sector within a month.
Thai PBS 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,”
But Mr. Wissanu Krea-ngam, deputy prime minister under General Prayut Chan-o-cha, confirmed on Friday that there will be no implementation of Section 44 for cryptocurrencies. Instead, normal regulatory procedures will be used.
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