Thailand will ban the use of cryptocurrencies as a means of payment for goods and services.
Thailand will ban the use of cryptocurrencies as a means of payment for goods and services, arguing that wider use of digital assets threatens the country’s financial system and economy.
Business operators – including cryptocurrency exchanges – are prohibited from providing such payment services and are prohibited from operating in a manner that promotes the use of digital assets to pay for goods or services, the Securities and Exchange Commission said in a statement Wednesday. However, the new regulation will not affect trading or investing in digital assets, the agency said.
While restrictions on the use of digital currencies for transactions will take effect starting April 1, companies will have until the end of April to comply with the new regulations. , the regulator said. It said restricting cryptocurrencies like Bitcoin to commercial transactions is in line with regulations in Europe, the UK, South Korea and Malaysia.
Thailand’s crackdown on digital assets comes as individuals – especially young investors – ramp up their crypto trading in search of better returns amid the country’s economy. the country is in recession. Commercial banks have been warned against directly engaging in digital asset trading due to high volatility, uncertainty and risk.
The regulator said the development of any unit of value other than the Thai baht would increase the cost of economic operations and reduce the effectiveness of monetary policy transmission. In the event of a liquidity crisis, the Central Bank of Thailand will not be able to provide support to various financial institutions in forms other than the baht, it said.
Under the new regulations, digital asset service providers are required to stop advertising, soliciting or setting up systems to facilitate the payment of goods and services via digital wallets. number. Business operators must warn customers against using digital assets for payments and can cancel their accounts if they are found to have broken the rules, it said.
The value of digital assets held by Thais has skyrocketed to 114.5 billion baht ($3.4 billion) from 9.6 billion baht a few years ago, the government said in January. Average daily turnover increased to 4.8 billion baht from 240 million baht, with the number of active trading accounts increasing to 1.98 million from 170,000 before the pandemic.
