Whether KYC required for 'decentralized' cryptocurrency trading, or not?
Investors in India, particularly individual investors, have invested billions of rupees to buy digital assets in the last two years, making cryptocurrencies more mainstream than at any other time.
During the past few years, the value of virtual currency has risen sharply. There have been concerns about decentralized currencies and platforms being misused by financial regulators around the world, including India.
According to market research firm Chainalysis, India has become the second-highest nation in terms of crypto adoption, and given the current scope, experts believe that 2022 might see India leading the world pack in deriving utilities from the decentralized disruption, provided the government takes a progressive regulatory stance. Nearly 15 million Indians are now involved in the cryptocurrency market.
It even went so far as to suggest that cryptocurrencies have no intrinsic value and aren't even worth a "Tulip," according to the RBI. Financial and macroeconomic stability are also at risk, according to the central bank. Regulators have also warned about the misuse of crypto platforms for terror financing and money laundering because to the anonimity features, as exchanges would not trace the transactions.
Even though crypto services are supposed to be decentralized, in the aftermath of this, more and more crypto platforms are requesting that their consumers fill out Know Your Customer (KYC) details.
Who needs to know their customer's identity when trading crypto?
"Know your customer" is an effective technique for an organization to validate and, hence, verify a client's legitimacy. Prior to making investments in various financial products, the customer must present the relevant KYC documentation. In most cases, financial institutions are required by the RBI to conduct the KYC procedure for all customers before allowing them to engage in any financial activity. This is a one-time process, regardless of whether the customer chooses to verify their KYC online or offline.
Despite the fact that KYC for crypto trading is not required, crypto exchanges and platforms are increasingly requesting that investors complete KYC for crypto trading.
Many decentralized services are designed to allow consumers to stay anonymous and to keep their personal information hidden from any central authority in order to protect their privacy and anonymity. Regulators don't like it when crypto companies can't identify who their actual clients are.
Pressure from regulators is forcing even the most reticent crypto companies to enact increasingly severe KYC methods. According to Binance, new customers were required to show a government-issued ID and pass facial verification in August of last year before they were allowed to make deposits and trades.
Complaints or grievances from investors could be easier to resolve after KYC has been completed.
Tax breaks for crypto trading have been granted by the Thai Cabinet. Investors and businesses will find the new tax regulations "far more beneficial," as one Thai executive at a cryptocurrency exchange put it.
A New Tax Regime for Crypto Investments Has Been Adopted in Thailand
According to a Thai government website release, Thailand's Cabinet has approved new tax exemption guidelines for crypto trading.
Deputy Finance Minister Santi Prompat and Finance Minister Arkhom Termpittayapaisith jointly announced the meeting's outcome, indicating that cabinet approval of the crypto tax reduction measures was given.
Traders will be able to credit annual losses against gains for tax purposes on crypto investments, according to the country's finance minister. Transfers of cryptocurrency or digital tokens on regulated crypto exchanges would likewise be exempt from VAT of 7%.
From April 2022 until December 2023, the Bank of Thailand, Thailand's central bank, will issue Central Bank Digital Currency (CBDC), which will be free from taxes.
The Thai Revenue Department recently released a document describing the new tax laws for cryptocurrencies and digital tokens. An CEO of a cryptocurrency exchange in Thailand says the new tax rules are "far more beneficial to both investors and industry."
In the past, Thailand sought to levy a 15% withholding tax on all bitcoin transactions conducted within the country. The plan was put on hold after industry criticism.
In the recent year, the country has seen a significant rise in crypto trading. The number of crypto trading accounts in Thailand, according to a finance ministry official, will rise to roughly two million by the end of 2021 from 170,000 the year before.
The Thai Stock Exchange announced last month that it intends to open a digital asset trading platform.
The press release. Decentralized crypto exchange bitoftrade launched on March 10, 2022 with a transparent and non-custodial solution that makes powerful trading tools available to every sort of user, regardless of their financial background or trading experience.
With bitoftrade, customers may obtain more value out of their cryptocurrency investments. Leverage trading, limit orders, and token swaps between more than 900 different tokens are just some of the extensive trading features available to users on the platform.
Cryptocurrency exchanges have seen a surge in popularity over the previous few years. During this time, both centralized and decentralized exchanges were developed. There are two issues with centralized exchanges that limit their usefulness. Aside from the fact that they're a custodial service, this means that traders' funds are at risk of being hacked. Users are also need to pass KYC and submit specific information about the origin of their funds in order to make withdrawals.
Because they are non-custodial and anonymous, decentralized exchanges cater to a more affluent clientele, but most of them lack complex trading features (like leverage, for example). There are a number of drawbacks to using a decentralized exchange, including a lack of transparency regarding fees, transaction speed, and customer service.
For crypto users, bitoftrade was conceived as an alternative. There are no registration or KYC requirements, and the cost structure is clear because it is a decentralized exchange (DEX).
It is the belief of the Bitoftrade team that everyone should be able to manage and control their own money. Bitoftrade's powerful toolset, non-custodial politics, and transparent attitude make it easy to trade crypto using various trading instruments for beginners and expert traders alike.