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Thailand's government is offering to waive corporate income tax and value added tax for companies raising capital through Initial Coin Offerings (ICOs), deputy government spokesperson Rachada Dhnadirek told reporters on Tuesday.
According to Dhnadirek, companies will have access to alternative means of raising capital through investment tokens, in additional to conventional methods like debentures.
It's estimated that the Thai government is set to lose approximately US$1 billion in taxes from about US$3.7 billion raised through ICOs over the next two years, said Dhnadirek. However, it's still unclear if companies must perform disclosures to the Thai Securities and Exchange Commission (SEC) before running ICOs.
Tightening regulations
Despite the latest developments, Thailand is still prioritising investor protection, with the SEC announcing potential revisions in its stance towards crypto last year, shortly after Singapore and Thailand-based crypto exchange Zipmex paused withdrawals.
In September, the SEC announced a ban on crypto companies from offering staking and lending services.
“The extreme volatility of digital-asset prices has spurred the urgent need for improved supervision,” Ruenvadee Suwanmongkol, SEC secretary-general said in July.
“Our main focus will be to provide more protection for small investors, some of whom are putting most of their savings into these assets.”
Thailand is currently ranked 8th on Chainalysis' Global Crypto Adoption Index 2022
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