Thailand to Impose Formal Restrictions on the Use of Cryptocurrency in Payments

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Key Takeaways:

  • The Thai Securities and Exchange Commission (SEC) has also recommended a set of guidelines to limit the usage of digital assets for payment purposes.
  • Thailand’s financial regulators intend to restrict the use of digital assets as a payment method for products and services.

Thailand’s financial regulators are likely to issue recommendations to limit the use of cryptocurrency as a payment method.

The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) issued a combined press release claiming that using cryptocurrencies for payment poses a threat to Thailand’s financial industry.

The agencies acknowledged that digital currencies are widely used as a payment method, but regulators must prioritize consumer protection.

Furthermore, the regulators stated that they had examined the advantages and disadvantages of digital currencies in payment, with price volatility, cybercrime, data privacy, and money laundering standing out as major concerns.

“Regulators will consider exercising power in accordance with relevant legislative frameworks to limit the widespread adoption of digital assets as a form of payment for goods and services,” according to the statement.

The rules are anticipated to concentrate on a few cryptocurrencies while also considering the relevance of financial innovation.

According to Thailand’s SEC Secretary-General Ruenvadee Suwanmongkol, the agency is responsible for supporting the development of digital asset enterprises while also protecting consumers. On the other hand, the regulators have not stated when the regulations would be released.

Thailand has recently increased its focus on creating bitcoin rules since the country has emerged as a significant cryptocurrency market.

The country’s finance ministry recently announced that profits from cryptocurrency trading would be subject to a 15% capital gains tax.

The BOT warned banks against engaging in direct transactions with bitcoin trading platforms in December. The bank identified market volatility as a concern.

A November 2021 SEC report revealed that digital currency transactions totalled 205 million baht ($6 million), demonstrating the country’s growing interest in crypto. In particular, the month saw the latest Bitcoin all-time high of nearly $68,000.

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Chetna Prakash

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