Thailand tax officials have announced that the planned taxation of earning from cryptocurrencies in the country has been scrapped. According to the new release, income from digital assets that the country’s authorities initially announced would be subject to 15% in taxes can now be reported as income tax gains.

The officials said on Monday that this new policy affects crypto mining and trading incomes. This, according to the country’s revenue department, allows investors in the nascent industry to offset losses against gains made within the fiscal year to meet the aspirations of the industry.

The authorities rescinded their decisions based on criticism of the planned tax regime which industry experts warned would be counter-productive to the industry that is still in its infancy considering that the planned policy was considered excessive.

Trading of bitcoin and other online currencies has expanded rapidly in Thailand during the coronavirus pandemic, which has hit the country hard in traditional industries including tourism — an area that generated about a fifth of GDP before the closure of the border to most international travel in 2020.

The news was welcomed by many in the crypto community. Pete Peeradej Tanruangporn, chief executive officer (CEO) of Upbit, a crypto exchange, who is also a co-chair of the Thailand Digital Asset Operators Trade Association said:

“The revenue department did a lot of homework and reached out to crypto operators as well to get feedback,” “It is much more friendly to both investors and the industry.”

Thai regulators have been cautious in their quest to bring cryptocurrencies under its regulatory control. This is not surprising since the country went through a crushing financial crisis in 1997-98 as a result of hot cash flow.

The Bank of Thailand and Thai SEC, last week announced that they would issue a guide for the use of digital assets in the country. They added that there were no marked benefits in the use of these assets for consumers and businesses.

The agencies added that they had no plans to limit the use of the new technology. It also invited submissions from stakeholders to assess their views prior to February 8.

Among the critics of the proposed measure was David Carlisle, director of policy and public affairs with Elliptic. He said that any restrictions of crypto payment was not necessary.

“With appropriate safeguards in place, merchants can accept crypto payments without posing excessive and broad risks that cause harm.”