On the rise of cryptocurrencies and initial coin offerings across the world, it is impossible to ignore the massive impact and embedded legal implications. Accordingly, the Emergency Decree on the Digital Asset Businesses B.E. 2561 (the “Decree”) was promulgated and came into effective on 14 May 2018 to regulate digital asset-related transactions, having the Office of the Securities and Exchange Commission (the “SEC”) as the supervisory authority to oversee the public offering of digital tokens and operation of digital asset businesses (e.g. digital asset exchange, broker and dealer).

Despite the varied approach adopted by each country to cope with the controversy of cryptocurrencies, the Decree does not prohibit these fast-growing transactions but rather sets out regulatory framework and protective measures for the stakeholders. Particularly, the Decree requires the issuer to seek approval from and file a registration statement and draft prospectus with the SEC and the public offering must be made through the approved ICO portal. Further, an operator of digital asset businesses is subject to certain prescribed qualifications and licencing requirements.

Likewise, the Emergency Decree on the Amendment of the Revenue Code (No. 19) B.E. 2561 was issued to specifically recognise (i) a share of profit or any benefit derived from holding or having possession of digital tokens, and (ii) capital gains from the transfer of cryptocurrencies or digital tokens, as taxable income and are subject to applicable taxes.
 

This document is solely intended to provide an update on recent development in Thailand legislation and is not purported to provide a legal opinion, nor a legal advice to any person.