Thailand on 25 January 2022 announced that the country will regulate the use of cryptocurrencies as a means of payment.
In a joint statement, the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) and the Ministry of Finance (MOF) said they “deem it necessary to regulate the usage of digital assets as a means of payment for goods and services, to avert potential impacts on the country’s financial stability and economic system.”
The regulators also said that they had reviewed the pros and cons of crypto assets.
“Digital asset business operators have expanded their business to cover services related to the use of digital assets as a means of payment for goods and services,” the regulators note.
Use of crypto as a mode of payment in Thailand
The regulators noted the risks cryptocurrencies pose to Thailand’s financial sector.
“At present, widespread adoption of digital assets as a means of payment for goods and services poses risk to the country’s economic and financial system. Therefore, clear supervision of such activity is needed,” noted Sethaput Suthiwartnarueput, Governor of the BOT.
Therefore, a robust framework for regulating cryptocurrencies is being built to safeguard individuals and businesses from risks of price volatility, data leakage, cybertheft, as well as money laundering.
“Recognising such risks and implications, regulators will consider exercising power in accordance with the relevant legal frameworks to limit the widespread adoption of digital assets as a means of payment for goods and services,” the regulators said.
The statement added that “guidelines will be issued for certain digital assets that are supportive of the financial system and financial innovation while not posing systemic risks.”
Read the full press release here.
Thailand’s own crypto
According to Yahoo Finance, the crypto market has grown substantially in the country. Thailand also plans to launch its own digital token, TAT coin, which is part of the country’s ‘cryptourism’ campaign.
Retailers and real estate developers in Thailand are reportedly accepting digital assets as payments, in line with a boom in the crypto market in the country.
In December 2021, Thailand’s central bank said that it is aiming to test a retail central bank digital currency (CBDC) for public use in late 2022.
(Main and Featured images: Tezos/@tezos/Unsplash)
This article first appeared of Lifestyle Asia Bangkok.