Thailand’s regulators have decided to restrict the usage of cryptocurrency as a payment method. The government considers the country’s current payment system to be efficient and claims that cryptocurrency would only pose hazards to the financial system, economy, people, and enterprises.
Thailand’s Securities and Exchange Commission (SEC) has Issued Regulations Restricting the Use of Digital Assets for Payments
Thailand’s financial regulators are taking steps to restrict the use of cryptocurrencies in the payment of goods and services, citing a variety of financial and economic risks. The Securities and Exchange Commission (SEC) of the United States published measures on Wednesday aimed at discouraging digital asset operators from offering and supporting such services.
The decision follows conversations with the Bank of Thailand (BOT) about the benefits and hazards of digital assets, during which the two institutions agreed on the need for rules to protect the nation’s financial system and economy, as well as consumers and businesses. These dangers included price volatility, personal data leakage, and embezzlement.
The Thai Securities and Exchange Commission (SEC) will closely monitor providers in the industry in the future to ensure that they are not offering digital assets as a payment method. At the same time, the new rules aren’t meant to prevent anyone from trading or investing in cryptocurrency. According to the regulator:
All types of digital asset business operators are prohibited from providing services or acting in a way that encourages or promotes the use of digital assets to pay for goods and services, such as advertising, soliciting, or presenting themselves as being available to pay for goods or services to merchants.
The committee went on to say that businesses should not use systems and tools to enable crypto payments or open wallets for that reason. If a crypto platform discovers that its customers are using trading accounts to make payments, it must notify the customers and, if required, take additional action, such as temporarily suspending or terminating services.
The new restrictions will take effect on April 1, 2022, according to the SEC. Companies that provide services that are affected by the new limits will have 30 days to comply with the rules, according to the body’s statement.
In January, the SEC and the BOT announced their plans to regulate cryptocurrency payments. The regulation change comes despite prior initiatives in Thailand, a popular tourist destination, to make such payments easier. For example, the tourism industry recently met with the central bank to discuss alternate payment options, such as cryptocurrency, for Russian visitors whose nation has been sanctioned as a result of its invasion of Ukraine.
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