According to a French news website, France’s lower house of parliament (Assemblée Nationale) has backed a proposed plan from its finance commission which will effectively bring the taxes on bitcoin gains in line with other capital gains taxes in the country. At present, bitcoin sales are taxed about 20 percent more than traditional capital gains or sales of stocks and other securities.

The bill is spearheaded by Eric Woerth, the body’s finance committee chairman. It effectively brings the tax rate for bitcoin sales from more than 36 percent to the flat 30 percent that other capital gains sales pay. It was, however, not enough for some French citizens, one of whom said that the previous and proposed taxes both inhibit innovation.

Tax Also Applies to Bitcoin Purchases

According to French outlet Le Figaro, the tax would not only apply to strict sales of bitcoin such as using LocalBitcoins or Coinbase to realize profits but would also apply to using bitcoin to buy things, e.g., when “used as a means of payment for acquisition of goods or services.”

France is far from the only jurisdiction to tax bitcoin in this way, but the regressive method of taxation arguably stifles a technology that securely provides citizens of said jurisdictions a secure and powerful way to shop. More to the point, when a person uses bitcoin to purchase a product they are not getting real-world value in the same way as a regular market sale of coin — they cannot immediately turn around and re-invest if the market takes a dive, for example, as is the strategy of many bitcoin investors which generates a lot of taxes.

The tax reduction plan must pass the general legislative session and be included in the 2019 budget to become official, but it is in line with other moves on the part of France’s government to attempt to create a more friendly regulatory environment for cryptosecurities.

PACTE to Create Complete Regulatory Framework for ICOs and Cryptocurrencies

bruno le maire france bitcoin
Bruno Le Maire | Source: Flickr/EU2017EE Estonian Presidency

French Finance Minister Bruno Le Maire has been vocal on the subject of cryptos and his desire to make France the leading hub for ICOs in Europe. His support is one of many prongs in the financial wing of the French government’s effort to modernize and revitalize the French economy, in part with crypto investors.

In a recent interview, French treasury official Sebastien Raspiller said:

“Blockchain provides very promising avenues for innovation, including in the financial sector, and France was one of the first countries to adapt its legislative framework to explicitly allow the use of blockchain.

“In 2017, the challenges and opportunities raised by ICOs and crypto-assets became a more pressing issue. Given the potentially strategic nature of this question, the Minister decided to launch a mission on this topic, which was led by former deputy-Governor of the French central Bank, Jean-Pierre Landau.”

The government is currently finalizing a broad plan for economic development which is dubbed, in English, the Action Plan for Business Growth and Transformation, which includes a number of important changes for the crypto market. Specifically, it will include the creation of an “ICO visa,” which French authorities will determine eligibility for based on the submission of an ICO’s whitepaper. According to a previous CCN article on the subject:

“The visa excludes foreign corporations in an attempt to attract more projects to incorporate within the French nation. The new ICO visa will enable legitimate projects to more easily access services from banks and accounting firms, which to date has been difficult due to the regulatory uncertainty in the sector.”

Ultimately, many in the blockchain sector will agree that France is moving in the right direction. Friendly regulations are better than harsh ones, and occasionally a complete lack of regulation can open the door to limitless prosecution and tepidness on the part of would-be cryptonaughts who fear unknown consequences to trafficking in cryptos.

This post is credited to ccn

The government of Thailand has announced plans to adopt distributed ledger technology to fight tax avoidance.

Director-general Ekniti Nitithanprapas said the Revenue Department intends to use blockchain to verify whether taxes were paid correctly and to speed up the tax refund process.

Thai Government Announces Plan to Use Blockchain Technology to Improve Tax Collection System

The head of the Revenue Department of Thailand has said that the use of disruptive technologies such as blockchain and machine learning for the purpose of improving the tax collection system was his priority, the Bangkok Post reported.

While blockchain will be used to verify taxes and speed up tax refunds, machine learning will be used in the fight against tax evasion by tracking tax fraud and creating more transparency.

Thailand has shown an open-minded approach to blockchain technology and cryptocurrencies throughout the years. Tax-wise, the government of Thailand collects 15 percent capital gains tax levied against profits made from the buying and selling of digital tokens, according to a new tax legislation. There is also a 7% value-added tax, but according to Apisak Tantivorawong, the government’s Finance Minister, most investors are exempted from it.

The Securities and Exchange Commission (SEC), the country’s financial watchdog, has announced a regulatory framework for initial coin offerings (ICOs) taking effect from July 16, 2018. Digital token issuers must be registered with the Thailand SEC before putting digital assets on sale.

Only high net-worth investors, venture capital firms, private equity companies, and other institutional investors, are allowed to acquire unlimited units of digital assets in ICOs, according to the Thai regulator, which has jurisdiction over the space, according to a recent Royal Decree. Retail investors are limited to buying tokens worth less than 300,000 baht ($9,050).

Following the new ICO rules, the SEC has reported that around 50 prospective initial coin offerings have shown interest in securing a license from the regulator and 3 of them have followed through with an application. The SEC secretary-general Rapee Sucharitakul also said that around 20 companies were seeking to operate officially as a digital asset exchange. Bithumb, one of the world’s largest cryptocurrency operators, has announced that it successfully obtained approval from the regulator.

In late October 2018, the Thai SEC released a warning to investors regarding what it describes as “renegade ICOs,” which are heavily advertising in the region through multiple means despite being unregistered with the SEC. The “renegade” coin offerings include Every Coin, Orientum Coin (ORT Coin), OneCoin and OFC Coin, Tripxchain Coin (TXC Coin), TUC Coin, G2S Expert ICO, Singhcom Enterprise ICO, Adventure hostel Bangkok ICO, and Kidstocurrency ICO, according to the statement.

The Securities and Exchange Commission requires ICO projects to apply for a license before a token sale.

“The ICO acceptance criteria may include due diligence and screening of funders from dishonest people. The source code of the smart contract will automatically be enforced against the contract. After the sale, the SEC publishes a copy of the statement on the SEC website,” the regulator stated.

Investors, however, are not banned from investing in “renegade ICOs.”

This post is credited to newsbtc