• Tue. Aug 2nd, 2022

Bitcoin mining rises in Thailand after Chinese crackdown

Bitcoin mining continues to increase in Thailand after China’s crackdown. Local investors bought the equipment and used it locally.

Following China’s crackdown, there is the boom in bitcoin mining in Thailand. Thai investors have secured and operated mining rigs and are currently making between $ 30 and $ 40 per day.

Impact of the Chinese crackdown on the prices of mining platforms

Over the past year, the number of bitcoin miners in Thailand has increased following China’s crackdown on bitcoin mining. The shutdown has forced major players in the crypto industry to terminate or move their equipment to countries more favorable to crypto regulation.

Several small investors have acquired mining equipment from miners based in China because of the low price. Each new machine costs over $ 13,000, but despite the price, demand continues to flourish.

Thai businessman Pongsakorn Tongtaveenan buys Antminer SJ19 Pro from Chinese miners, then sells it on to local investors. He said:

“Bitcoin is the gold of the digital world. But a mining rig is like gold mining stocks: you receive dividends based on the price of gold. There are around 100,000 Thai miners now.

In September, the Chinese government banned all mining and trading in crypto. This is because of the problems associated with illegal and criminal activities. In addition, it threatened the economic and financial order of the country.

Thai crypto transactions are now subject to tax generated by Bitcoin mining

The Thai government is transforming the regulation of the country’s crypto ecosystem by implementing new tax rules for the digital currency industry. Crypto trading is now subject to a capital gains tax of 15%.

The Thai tax service plans to step up its oversight duties after the success of the digital asset market last year. It collects taxes on crypto transactions as a profit from these activities. They consider it as taxable income under article 40 of the royal decree amending the tax code n ° 19.

The Ministry of Finance has advised investors to calculate and report their income from cryptocurrencies in tax returns this year to avoid penalties. The department will get these new taxes from all taxpayers who have made a profit from crypto. It includes commercial and mining operations.

Tax-exempt crypto exchange

New tax requirements exempt crypto exchanges in the country. Zipmex Thailand has raised concerns about the current uncertainty regarding the crypto tax reporting process and how to determine profits.

“Tax methods and calculations should be more concise, clear and easy to understand. A lot of people I know want to pay taxes but don’t know how to calculate them, ”said CEO and co-founder Akalarp Yimwilai of Zipmex.

The explanation follows after local government plans to set “red lines” for cryptocurrency this month. The Bank of Thailand will issue a consultation paper on regulations specific to the crypto industry.

Adopt cryptocurrencies and regulations

Existing rules have required crypto exchanges to disclose user information to regulators. They have to do it every time there are business-to-business transactions. This is to regulate a growing number of illegal activities emanating from the manifestation of the global cryptocurrency industry.

Earlier last year, crypto fund managers had to apply for a license to continue the activity. The same goes for investment advisers. Crypto exchanges are governed by the regulations of the SEC.

Investors, however, have little support in the activity of portfolio management. The country wants to strengthen the management of cryptocurrencies and digital assets. Likewise, it will improve the asset management rules in Thailand’s crypto laws.

Image source: Alésia Kozik / Pexels

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