The Thai government finally decided to ban the use of cryptocurrencies as a means of payment for goods and services, fearing that wider use of digital assets would “threaten the country’s financial system and economy.”
The country’s Securities and Exchange Commission (SEC) said in a statement on March 23 that from April 1, commercial operators, including cryptocurrency exchanges, will not be allowed to offer or promote such payment services, with a transition period of end of the month. It noted that the move was in line with earlier discussions by the country’s central bank, the Bank of Thailand.
Under the new rules, digital asset service providers must “cease advertising, soliciting or establishing systems” to facilitate payment for goods and services through digital wallets. Business operators must warn customers against using digital assets for payments and can cancel their accounts if found to be in violation.
However, the new regulations do not cover transactions or investments in digital assets, the statement said.
More cryptocurrency traders seek to combat economic slowdown
Thailand’s crackdown on digital assets comes as a growing number of individuals, especially young investors, are increasing their crypto holdings in search of higher yields and as a countermeasure to the country’s slowing economy.
Nonetheless, commercial banks have been warned not to directly engage in digital asset trading due to high volatility, uncertainty and risk.
The Bank of Thailand said it would not be able to provide assistance to various financial institutions in forms other than the baht if the country had a general liquidity crisis.
The value of digital assets has soared
Still, the value of digital assets held by Thais has soared to 114.5 billion baht ($3.4 billion) from 9.6 billion baht a few years ago, according to government data released in January 2022.
Average daily trading volume has jumped to 4.8 billion baht ($140 million) on popular domestic cryptocurrency exchanges such as Bitkub and Satang, as well as international cryptocurrency platforms such as Binance, Kraken or Coinmama, to 4.8 billion baht ($140 million), and the number of active trading accounts has grown to approx. From 170,000 before the Covid-19 pandemic to 1.98 million.
The Thai government finally decided to ban the use of cryptocurrencies as a means of payment for goods and services, fearing that wider use of digital assets would “threaten the country’s financial system and economy.” The country’s Securities and Exchange Commission (SEC) said in a statement on March 23 that from April 1, commercial operators, including cryptocurrency exchanges, will not be allowed to offer or promote such payment services, with a transition period of end of the month. It noted that the move was in line with earlier discussions by the country’s central bank, the Bank of Thailand. 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 wider use of digital assets would “threaten the country’s financial system and economy.”
The country’s Securities and Exchange Commission (SEC) said in a statement on March 23 that from April 1, commercial operators, including cryptocurrency exchanges, will not be allowed to offer or promote such payment services, with a transition period of end of the month. It noted that the move was in line with earlier discussions by the country’s central bank, the Bank of Thailand.
Under the new rules, digital asset service providers must “cease advertising, soliciting or establishing systems” to facilitate payment for goods and services through digital wallets. Business operators must warn customers against using digital assets for payments and can cancel their accounts if found to be in violation.
However, the new regulations do not cover transactions or investments in digital assets, the statement said.
More cryptocurrency traders seek to combat economic slowdown
Thailand’s crackdown on digital assets comes as a growing number of individuals, especially young investors, are increasing their crypto holdings in search of higher yields and as a countermeasure to the country’s slowing economy.
Nonetheless, commercial banks have been warned not to directly engage in digital asset trading due to high volatility, uncertainty and risk.
The Bank of Thailand said it would not be able to provide assistance to various financial institutions in forms other than the baht if the country had a general liquidity crisis.
The value of digital assets has soared
Still, the value of digital assets held by Thais has soared to 114.5 billion baht ($3.4 billion) from 9.6 billion baht a few years ago, according to government data released in January 2022.
Average daily trading volume has jumped to 4.8 billion baht ($140 million) on popular domestic cryptocurrency exchanges such as Bitkub and Satang, as well as international cryptocurrency platforms such as Binance, Kraken or Coinmama, to 4.8 billion baht ($140 million), and the number of active trading accounts has grown to approx. From 170,000 before the Covid-19 pandemic to 1.98 million.
