India and Thailand Part Ways on Crypto Tax Plans
Both the Indian and Thai governments have been active within the crypto space in recent months. At the start of the year, the news hit the wires of the RBI searching a number of crypto exchanges on the suspicion of tax fraud.
News then followed of the Indian government setting up a FINTECH division to track cryptos, crypto launches, and NFTs. At Davos 2022, India’s Prime Minister Modi then called for “global cooperation and a common approach towards addressing emerging challenges posed by cryptocurrencies”.
Modi’s call for global cooperation followed the Bank of England’s call for a global crypto regulatory framework back in late 2021. The IMF echoed the Bank of England’s calls earlier this year.
Indian Government Rolls out 30% Crypto Tax
Following increased crypto scrutiny in India, news hit Twitter today of the Indian government planning to introduce a 30% crypto tax.
Digital Currency announced in the #Budget2022-23 is a landmark announcement : Sharad Kohli, Tax Expert@FinMinIndia #AatmanirbharBharatKaBudget
Watch the Discussion https://t.co/ERTTBQAt7G https://t.co/84hz5qdpg8
— All India Radio News (@airnewsalerts) February 1, 2022
India’s finance minister Nirmala Sitharaman announced the crypto tax in a budget 2022 speech. Significantly, Sitharaman also pointed out that any losses stemming from digital assets cannot be used to offset other income sources. The 30% tax rule coincided with India announcing its plans to introduce a digital rupee starting 2022-23.
Thailand Backs Down on 15% Crypto Tax Plan
By contrast, news hit the wires today of Thailand reportedly backing down on plans to introduce a 15% crypto tax. The Financial Times reported that the decision to ax the crypto tax plan came following strong opposition from traders.
Alongside India and other regulators, however, lawmakers in Thailand have also been active on the crypto regulatory front.
Just last week, news hit the wires of plans to further regulate the crypto market. Late last year, Thailand had banned meme coins and NFTs.
While India and Thailand have parted ways on the tax front, there will likely be a united front on broader crypto regulations in the months ahead.