- The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) and the Ministry of Finance (MOF) consider it necessary to regulate the use of digital assets as a means of payment for goods and services.
- The Thai authorities consider this necessary to avoid possible impacts on the country’s financial stability and economic system.
- The regulation does not contemplate restricting the trading of cryptocurrencies.
Although Thailand, some time ago, sought to make itself known as a paradise for cryptocurrency users and sought to become a friendly territory for this industry, today it has chosen to tighten measures that seek to regulate the operations of the crypto industry.
This is how the triumvirate that make up the Bank of Thailand (BOT), the Ministry of Finance (MOF) and the Securities and Exchange Commission of Thailand (SEC), announced in a joint statement that will seek to limit the widespread adoption of digital assets as a means of payment for goods and services.
The authorities reached this agreement because they consider that the widespread adoption of cryptocurrencies as a means of payment and their use as an investment could potentially affect financial stability and the economic system in general. TThe authorities also pointed out the additional risks for consumers and businesses due to price volatility, cyber theft, personal data leakage or money laundering, etc.
Control to limit risks
The authorities stated that they only want to maintain control to prevent irregularities and dangers that attack cryptocurrencies, and that they plan to issue new regulatory guidelines for specific cryptocurrencies that do not pose systemic risks and support the financial system.
“Clear supervision of such activity is necessary. However, technologies and digital assets that do not pose such risks must be supported with appropriate regulatory frameworks to drive innovation and greater benefit to the public, said Mr. Sethaput Suthiwartnarueput, Governor of the BOT.
BOT Governor Warns Against Cryptocurrency Use
On multiple occasions, the highest banking authority in Thailand, the BOT, has stated that it does not support the use of cryptocurrencies as a means of payment, and has issued warnings to holders of cryptocurrencies as a means of exchange, and to banking entities that do not get involved with cryptocurrencies due to their high volatility.
BOT Governor believes a central bank digital currency can achieve what cryptocurrencies can, but without the associated risks.
“We want to make sure we strike the right balance between enabling financial innovation and managing risk”, Suthiwartnarueput noted.
For his part, hethe deputy governor of this entity, Siritida Panomwon na Ayudhya, tosupports this decision and, without giving further details, indicated that both the banking institution it represents, as well as the pertinent organizations, They will study the possibility of allowing the operation of digital assets that are beneficial to the country.
Public consultation before issuance
The Thai SEC pointed out that the position, opinion and comments of the interested parties and the general public will be taken into consideration in order to later be able to establish regulatory frameworks in accordance with the functioning of the country, seeking to protect investors.
Therefore, having already been consulted with the Bank of Thailand and the Ministry of Finance, the SEC, in order to determine suitable laws and before they come into forceplans to hold a public hearing on the detailed regulations on February 8Charuphan Intararoong, deputy secretary general of the Securities and Exchange Commission (SEC), said at a news conference.
Charuphan further indicated that, for the time being, the regulation does not contemplate restricting the trading of crypto assets.
“Investors, consumers and citizens can continue to trade digital assets to invest as usual“, He said.
In Thailand, users of crypto assets who obtained dividends in transactions with cryptocurrencies must pay a 15% tax on their profits, according to a decree from the Ministry of Finance.
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