Thailand's cabinet on March 13 agreed to draft a law to oversee cryptocurrency trading and tax the largely unregulated market (Illustrative photo: NBC)

Bangkok (VNA) - Thailand's cabinet on March 13 agreed to draft a law to oversee cryptocurrency trading and tax the largely unregulated market.

Deputy Prime Minister Somkid Jatusripital’s spokesman Nathporn Chatusripitak said the Ministry of Finance also proposed new regulations to help prevent use of digital currencies in money laundering and fraud.

Thailand’s Revenue Department has recently asked the cabinet to amend the new revenue code which would include a proposed 10 percent capital gains tax on profits from trading in digital currencies.

Governor of the Bank of Thailand (BOT) Veerathai Santiprabhob told reporters that the country will have a law to comprehensively regulate all aspects of the cryptocurrency market including ICO (Initial Coin Offerings) in April. The new law will allow the Securities and Exchange Commission (SEC) of Thailand to manage ICO trading.

SEC Secretary-General Rapee Sucharitakul has revealed that a royal decree is commonly seen as the path to empower the SEC to regulate all aspects of the crypto sector including cryptocurrency exchanges and ICO fundraising.

In September, SEC revealed a positive outlook toward ICO, stressing it realises the potential of ICO in bringing new forms of funding for businesses and start-ups.

Chairman of the Thai Fintech Association Korn Chatikavanij, who previously served as the country’s Finance Minister between the end of 2008 and mid-2011, said his organisation supports the new plan.

He agreed with the Finance Ministry’s view of letting the SEC be the only organisation governing digital assets, because it already oversees securities and has a profound understanding of digital assets.

Earlier this year, the BOT issued a circular asking domestic commercial banks and financial institutions to refrain from trading and investing in crypto, as well as prohibiting their participation in and creation of crypto exchanges and trading platforms.-VNA