The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) have teamed up to review and issue guidelines on the use of digital assets as a payment tool.
In a joint press release on Tuesday, Thailand’s top regulators said it has become necessary to review and regulate digital assets as a means of payment for goods and services. After careful consideration and evaluation of all the pros and cons, the joint committee said that ehe use of digital assets as a widespread payment tool could represent a risk for economic-financial stability.
Sethaput Suthiwartnarueput, Governor of the BOT, said:
“Currently, the widespread adoption of digital assets as a means of payment for goods and services represents a risk for the country’s economic and financial system.”
The joint regulatory committee highlighted three risks associated with the use of digital assets as a means of payment:
- Volatility risk: the volatility of digital assets could be generated for both traders and users. Conversion fee could add additional charge.
- IT risk: consumers may face cyber theft, personal data leaks, or opportunity costs in cases of system failure.
- Compliance and legal risk: digital assets could present a legal risk due to the anonymity factor.
The joint committee believes that the current payment infrastructure in the country is efficient enough and that digital assets do not add viable benefits for consumers or businesses.
The Thai SEC conducted a public review after its discussion with the BOT and MOF. The main regulatory body has sought input from the public on the matter in order to derive a conclusive framework for the use of cryptocurrencies as a payment instrument.
The joint committee also said that more guidelines will be issued for specific digital assets that do not pose any systematic risk, which could be an indication of the use of stablecoin or central bank digital currency (CBDC). The official statement noted that the final decision on the guidelines will be made only after receiving feedback from stakeholders and the general public.
At a time when Thailand’s top regulators are working on crypto payment regulations, the country’s government executives are divided over the crypto tax proposal. Many current and former government executives have warned against implementing strict tax policies as it could deter foreign investors and pose a risk to the growth of the fledgling industry.
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