Thailand has axed plans to levy a 15% withholding tax on cryptocurrency transactions following pushback from the country's crypto traders.
Earned income on crypto trading or mining can be reported as capital gains on income taxes, tax officials said on Monday, according to a Financial Times report. The new rules would allow traders to offset their losses against gains made in the same year.
Thailand's Revenue Department previously had plans to strengthen its oversight of cryptocurrency trading following significant growth in the size and value of the market in 2021.
However, stakeholders in the crypto industry issued warnings that excessive taxation could kill off potential growth in the sector.
Thailand's financial authorities last week announced plans to regulate the use of digital assets as a method of payment. The Bank of Thailand, Ministry of Finance and the Securities and Exchange Commission said they will issue guidelines for certain digital assets that support the financial system without posing any systemic risk.