The Bank of Thailand might be increasing its gold reserves to power a de-dollarized trading system, according to Jan Nieuwenhuijs, a gold market analyst. Nieuwenhuijs states that the Bank of Thailand’s constant gold purchases might indicate the nation is preparing to address the possible trade imbalances derived from using Mbridge, a CBDC cross-border settlement project. […]
Bitcoin News
Bank of Thailand Tests Potential of a Retail CBDC, the Digital Baht
The Bank of Thailand (BOT) has released a report on its Retail Central Bank Digital Currency (CBDC) pilot project, conducted using Giesecke+Devrient’s (G+D) technology solution. The project tested the digital version of the Baht and its potential for financial innovation, delivering key lessons on the capabilities of a CBDC in supporting multiple online and offline […]
Bitcoin News
Thailand Abolishes Value-Added Tax Previously Applicable on Digital Asset Trades
The Thailand Finance Ministry has announced the removal of the previously applicable value-added tax on digital asset trading. This exemption, which took effect on Jan. 1, 2024, extends to regulated brokers, dealers, and authorized cryptocurrency exchanges. VAT Exemption to Bolster Thailand’s Digital Asset Industry To establish Thailand as a hub for digital assets, the Bangkok […]
Bitcoin News
Thailand Threatens Facebook With Shutdown Over Crypto Scams
The government in Bangkok will try to shut down Facebook in Thailand alleging the social media network isn’t doing enough to stop scams. Fraudsters have been luring users to invest in fake companies and cryptocurrencies, authorities said, and the number of complaints has been mounting.
Meta Platforms’ Facebook Faces Online Fraud Lawsuits in Thailand
Authorities in Thailand have accused the popular social media platform Facebook of facilitating fraud and being an accomplice with scammers in deceiving investors. On Tuesday, the Bangkok Post reported that the Digital Economy and Society Ministry will seek a criminal court order this month to shut down Facebook in Thailand.
The department blames Facebook for failing to help screen the scammers’ sponsored pages despite multiple requests for cooperation in taking down advertisements identified as scams by the ministry and relevant government agencies through the years. Speaking to Reuters, Minister Chaiwut Thanakamanusorn stated:
We are asking the court to close Facebook, not allowing it to provide services in Thailand if they let these fake pages scam people.
The digital ministry further explained that scams perpetrated on Facebook included luring users to put money into fake companies and trade digital currencies. Scammers also faked being various government bodies, such as the country’s Securities and Exchange Commission (SEC), and exploited the names and images of famous people and companies to deceive investors.
Separate lawsuits against the scammers and Facebook will be filed by the Royal Thai Police as well, in both criminal and civil courts, Chaiwut revealed on Monday following a meeting with police officials and representatives of the SEC and other agencies.
He also unveiled that private individuals and government authorities, including the securities regulator, have so far submitted to the Thai judiciary around 300,000 complaints about fraud cases.
Facebook, which has 65 million users in Thailand, has cooperated to block scam pages but according to Chaiwut these efforts have not been sufficient to curb fraud. He insisted that Facebook should strengthen its screening system on the sponsored pages which generate advertising revenues for the company.
Do you think Thai courts will shut down Facebook in Thailand? Share your thoughts on the subject in the comments section below.
Pheu Thai Candidate Promises Digital Currency Airdrop of $300 to Every Citizen in Thailand if Elected
A Pheu Thai candidate running for prime minister of Thailand position, Srettha Thavisin, has promised that every citizen in the country will receive 10,000 Thai baht (0) in digital currency if he wins the general election in May. However, a minister within the prime minister’s office in Thailand is concerned and has explained that the proposed airdrop could pose major challenges with specific implications.
Thailand Prime Minister Candidate’s 0 Airdrop Promise Raises Concerns
On Wednesday, Srettha Thavisin, a Pheu Thai candidate for prime minister of Thailand, declared that if his party wins the general election, the government will airdrop 10,000 baht in digital currency to every citizen in the country who is 16 years old or older. The Bangkok Post was the first to report on the story after it was revealed by the Pheu Thai chief adviser, Paetongtarn Shinawatra, on Wednesday.
Thailand wouldn’t be the only government to airdrop digital currency to its citizens, as the government in El Salvador airdropped worth of bitcoin (BTC) to citizens who were Chivo wallet users. According to the Bangkok Post report, the Pheu Thai party’s initiative is aimed at attracting crypto assets and blockchain innovation to Thailand. However, the free money must be spent within a “4-kilometer community radius within six months” of the project’s first phase, as stated by Bangkok Post reporter Supoj Wancharoen.
Thanakorn Wangboonkongchana, a minister in the prime minister’s office, is concerned about the proposed airdrop and wants “more details.” He also noted that “creating a digital currency would be a major challenge with implications for Thailand’s entire financial system,” according to the Bangkok Post report. Wancharoen also shared an opinion from Preeyaphat Raksasana, a second-year university student, who questioned where the funds for the airdrop would come from.
“The policy is disgusting,” Raksasana said. “Do they really think most people are that foolish?”
Since the Covid-19 pandemic, “helicopter money” or one-time direct stimulus payments to citizens has become a norm in several countries. A number of politicians across the world have proposed giving stimulus airdrops to citizens, and some have even supported schemes like universal basic income (UBI). In June 2023, Thailand’s government created a stimulus package worth 140 billion baht (.5 billion), with a good portion of the funds being allocated for one-time direct stimulus payments.
What are your thoughts on the use of airdropped digital currencies as a form of economic stimulus, and do you believe it could have positive or negative implications for Thailand’s financial system? Share your thoughts in the comments section below.
Thailand Government Disperses Confusion Surrounding Cryptocurrency Taxation
Before now, some countries have mapped out some crypto taxes for transactions on cryptocurrency assets within their jurisdiction. Thailand is one of the countries that proposes some taxation plans.
As the new year begins, the revenue department of Thailand is setting up its measures for implementing its tax plans on crypto traders this January. The move is to provide more clarifying information on the tax over crypto-related activities.
According to the director-general of the revenue department, this month will mark the finalizing of the criteria for tax calculations which will be on crypto trading profits. The statement’s release was one week following its government’s disclosed plans to levy crypto miners and traders with a capital taxation gain of 15%.
The total crypto market cap falls below trillion | Source: TradingView.com
A Bangkok Post article on Tuesday reported the instruction of Prayut Chan-o-cha, the Thai Prime Minister, to the revenue department. He told the department to analyze the issue and map out the taxation plans for the investors and the entire public.
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Following the Prime Minster’s instructions, the department has engaged the Bank of Thailand in a discussion. The talk is also the country’s Stock Exchange and Security and Exchange Commission.
Cryptocurrency Investors React On Taxation Plan
The Thai Digital Asset Association, while seeking clarifications, got in touch with the revenue department on Sunday.
A local media reports that the association seeks to know more concerning withholding taxes and capital gains. Suppakrit Boonsat, the President of the Association, stated that many cryptocurrency investors accept the taxation. However, their concern is making moves that may violate the Revenue Code.
Some traders are worried that there could be back taxation or penalties to trades and profits in previous years.
According to a spokeswoman from the government, the authorities are not posing any hindrance to industrial development and innovation with fintech included. However, she warned that a rush to accept crypto trading without a thorough understanding could lead to a crypto crisis.
Thailand intends to place its new taxation only on profits from miners and traders. In addition, there is an exemption of the country’s digital asset exchanges. With the largest affiliated with commercial banks and billionaire business tycoons.
Related Reading | January Proves Turbulent For Investors But NFT And GameFi Seems To Be Eating Good
According to the latest filing requirements, those that fail to comply with the rule will be heavilThethe move. In addition, they issued some warnings to individual businesses and commercial banks concerning adopting the country’s digital assets as pa through the movement options.
In December, through the move Bank of Thailand mentioned its plan of drawing out measures for regulating crypto-related activities. The regulation, which was tagged ‘Red Lines,’ will cover both businesses and individuals within the crypto industry.
Featured image from Pixabay, chart from TradingView.com
NewsBTC
Thailand and Hong Kong in Crypto Collaboration With Cross Border Token Project
Central banks are increasingly looking towards more efficient payment methods and crypto tokens are filling that role. Thailand and Hong Kong have just announced a joint agreement to utilize digital currencies to facilitate quicker payment in bilateral trade.
Cross Border Crypto
Central banks are beginning to realize that the options for cross border payments are woefully dated, painfully slow and ridiculously expensive. Yes, we’re talking about SWIFT.
The explosive growth of the crypto industry, which is really only a few years old, has highlighted how easy, fast and cheap it is to send money across international borders via a secure and immutable distributed ledger.
Nations, especially in Asia, are looking towards crypto to ease the process of sending finances overseas and Thailand and Hong Kong are the latest to embrace the embryonic technology.
According to reports, the two nations have entered an agreement to roll out a two-tier digital token as part of the process to create a prototype for cross-border transfers. The initiative has been dubbed Project LionRock-Inthanon and the first tier involves the issuance of a crypto token to participating banks.
According to the Hong Kong Monetary Authority (HKMA), the second tier involves the banks distributing these crypto tokens to their corporate customers for settling wholesale payments. The fintech collaboration between the HKMA and the Bank of Thailand was established in May.
The two nations have bilateral trade worth an estimated $US20 billion per year and the new system will give businesses a competitive edge over inflated exchange rate mechanisms between the two currencies.
Project LionRock is focused on streamlining cross-border transfers and payments between banks and companies rather than replacing cash as the People’s Bank of China intends to do with its crypto yuan. HKMA senior executive director Edmond Lau added;
“The prospect of issuing a central bank digital currency for retail purpose in Hong Kong is limited, as we have so many retail payment services (ranging from) credit card, debit card, and (others),”
He continued to state that the HKMA and Bank of Thailand will announce more details on their proof-of-concept study during the first quarter of 2020. Thailand’s central bank has already been researching its own central bank digital currency (CBDC) under ‘Project Inthanon’. The initiative involves banks such as HSBC, Standard Chartered, and a number of Thai banks including Kasikorn Bank and Krungthai Bank.
The Kingdom has recently opened its doors to crypto currencies by amending regulations to favor the industry and innovation.
Not Using Ripple
The system appears to be similar to that offered by San Francisco based fintech firm Ripple. The company’s loyal followers, also known as the ‘XRP Army’, have been insistent that banks will be using their token. This latest announcement proves that they are more likely to just develop their own rather than rely on one controlled by a third party.
Image from Shutterstock
The post Thailand and Hong Kong in Crypto Collaboration With Cross Border Token Project appeared first on NewsBTC.
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