Thailand tempts issuers of investment tokens while South Korea cracks down on crypto scams

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(Kitco News) – The government of Thailand wants to promote the growth of its digital asset industry by approving tax exemptions for crypto companies that issue investment tokens in the country.

A Reuters report indicates that Thailand’s Finance Minister Arkhom Termpittayapaisith announced the new tax relief on Tuesday, which was approved by Thailand’s cabinet. After the approval, the corporation tax and value added tax are waived for companies that issue digital tokens for investment.

The popularity of cryptocurrencies has increased in recent years after the country’s Securities Exchange Commission (SEC) began regulating digital assets. The government currently estimates that there will be 128 billion baht ($3.71 billion) in investment token offerings over the next two years, meaning the new tax break will result in a loss of 35 billion baht in tax revenue.

To compensate for this loss of revenue, the government hopes that the move will help attract a number of companies to set up in Thailand and expand their crypto ecosystems. Apart from investment tokens, companies can also raise capital through traditional methods such as bonds, according to deputy government spokesperson Rachada Dhnadirek.

Last year, Thailand relaxed tax rules on crypto trading in an effort to promote the development of the industry in the country. But not all regulatory bodies in the government are equally keen on crypto, including the country’s central bank and the SEC, which imposed a ban on the use of digital assets as a means of payment in March 2022, citing the danger it could have on the country’s financial stability and the overall economy.

South Korea to establish a fraud task force

In an effort to reduce the amount of money citizens lose to crypto scams, police in South Korea have announced that they will be launching a new cybercrime task force cracking down on crypto scams.

According to a report by KBS, the new cybercrime unit will focus on three main tasks – policing the dark web, reducing virtual asset crimes and preventing Titus attacks (DDoS). Each task will have its own subcommittee, but it is likely that the dark web subcommittee will also help investigate crypto-related matters.

The National Police Agency (NPA) has made a concerted effort in recent times to crack down on drug dealers who advertise on dark web portals and use Bitcoin and other cryptocurrencies to facilitate drug sales. To help with the new subcommittees, the NPA has recruited “professional investigators and experts from private IT companies” to join the task force.

This move by South Korean law enforcement comes amid an increase in crypto-related scams in the country, including several recent high-profile scams that have affected the public.

Included on this list are V Global, a real-life crypto exchange that stole $2.3 billion from 50,000 South Koreans with multi-layered Ponzi-type marketing tactics; QRC Bank, a fake crypto bank that stole $181 million from its unsuspecting investors; and a number of other smaller-scale vote phishing, fake crypto-mining platforms and dating app scams that have targeted individual citizens.