Thailand bans use of cryptocurrencies for payments
The Thai government finally decided to ban the use of cryptocurrencies as a means of payment for goods and services, fearing that a wider use of digital assets would “threaten the nation’s financial system and economy.”
The country’s Securities and Exchange Commission (SEC) said in a statement on March 23 that business operators, including crypto exchanges, must not provide or promote such payment services, effective April 1 with a transition period until the end of that month. The move is in line with earlier discussions between the Bank of Thailand, the country’s central bank, it noted.
Under the new rules, providers of digital asset services are required to “halt advertising, soliciting or establishing a system” to facilitate payments for goods and services via digital wallets. Business operators must warn clients against the use of digital assets for payments and may cancel their accounts if they are found breaching the rules.
However, the new regulation does not include trading or investments in digital assets, the statement said.
More crypto traders seek to counter economic slowdown
Thailand’s crackdown on digital assets comes as more and more individuals, especially young investors, are boosting their crypto holdings in search of better yields and as a counter strategy amid the country’s economic slowdown.
Still, commercial banks have been cautioned against direct involvement in trading of digital assets due to high volatility, uncertainty and risk.
In the event of a general liquidity crisis in the country, the Bank of Thailand will not be able to provide assistance to various financial institutions in forms other than the baht, the central bank said.
Value of digital assets soaring
Nonetheless, the value of digital assets held by Thais has soared to 114.5 billion baht ($3.4 billion) from 9.6 billion baht a couple of years ago, according to government figures released in January 2022.
The average daily turnover has jumped to 4.8 billion baht ($140 million) from 240 million baht on popular domestic crypto exchanges such as Bitkub and Satang and international crypto platforms including Binance, Kraken or Coinmama, with the number of active trading accounts having grown to around 1.98 million from 170,000 before the Covid-19 pandemic.
The Thai government finally decided to ban the use of cryptocurrencies as a means of payment for goods and services, fearing that a wider use of digital assets would “threaten the nation’s financial system and economy.” The country’s Securities and Exchange Commission (SEC) said in a statement on March 23 that business operators, including crypto exchanges, must not provide or promote such payment services, effective April 1 with a transition period until the end of that month. The move is in line with earlier discussions between the Bank of Thailand, the country’s central bank, it noted. Under the new rules,...
The Thai government finally decided to ban the use of cryptocurrencies as a means of payment for goods and services, fearing that a wider use of digital assets would “threaten the nation’s financial system and economy.”
The country’s Securities and Exchange Commission (SEC) said in a statement on March 23 that business operators, including crypto exchanges, must not provide or promote such payment services, effective April 1 with a transition period until the end of that month. The move is in line with earlier discussions between the Bank of Thailand, the country’s central bank, it noted.
Under the new rules, providers of digital asset services are required to “halt advertising, soliciting or establishing a system” to facilitate payments for goods and services via digital wallets. Business operators must warn clients against the use of digital assets for payments and may cancel their accounts if they are found breaching the rules.
However, the new regulation does not include trading or investments in digital assets, the statement said.
More crypto traders seek to counter economic slowdown
Thailand’s crackdown on digital assets comes as more and more individuals, especially young investors, are boosting their crypto holdings in search of better yields and as a counter strategy amid the country’s economic slowdown.
Still, commercial banks have been cautioned against direct involvement in trading of digital assets due to high volatility, uncertainty and risk.
In the event of a general liquidity crisis in the country, the Bank of Thailand will not be able to provide assistance to various financial institutions in forms other than the baht, the central bank said.
Value of digital assets soaring
Nonetheless, the value of digital assets held by Thais has soared to 114.5 billion baht ($3.4 billion) from 9.6 billion baht a couple of years ago, according to government figures released in January 2022.
The average daily turnover has jumped to 4.8 billion baht ($140 million) from 240 million baht on popular domestic crypto exchanges such as Bitkub and Satang and international crypto platforms including Binance, Kraken or Coinmama, with the number of active trading accounts having grown to around 1.98 million from 170,000 before the Covid-19 pandemic.
