Thailand announced that cryptocurrencies will be regulated as a means of payment for goods and services “to avoid potential impacts on the country’s financial stability and economic system.” The announcement was issued by the Bank of Thailand, the Securities and Exchange Commission of Thailand and the Ministry of Finance.
Cryptocurrency will become a payment method in Thailand
The Bank of Thailand (BOT), the Securities and Exchange Commission of Thailand (SEC) and the country’s Ministry of Finance (MOF) jointly announced on Tuesday their plans to regulate cryptocurrencies as a payment method.
The three regulators explained that after reviewing the benefits and risks of cryptoassets, they “considered the need to regulate the use of digital assets as a means of payment for goods and services to avoid potential impacts on the country’s financial stability and economic system. “
Citing that cryptocurrency business operators have been providing services related to the use of cryptocurrencies as a means of payment, including the establishment of cryptocurrency settlement systems, the regulator acknowledged:
Beyond its use as an investment, this could lead to wider adoption of digital assets as a means of payment, which could impact financial stability and the entire economic system.
Authorities then outlined various cryptocurrency-related risks to consumers and businesses, such as “price volatility, cyber theft, personal data breaches or money laundering, among others.”
The announcement further detailed: “The regulator will consider exercising powers in accordance with the relevant legal framework to limit the widespread adoption of digital assets as a means of payment for goods and services.”
SEC Secretary-General Ruenvadee Suwanmongkol clarified that the SEC, which regulates crypto businesses, has a policy to promote digital asset businesses while protecting consumers.
Bank of Thailand Governor Sethaput Suthiwartnarueput said:
Currently, the widespread adoption of digital assets as a means of payment for goods and services poses risks to the country’s economy and financial system. Therefore, there is a need for explicit oversight of such activities.
“However, technologies and digital assets that do not pose such risks should be supported by an appropriate regulatory framework to drive innovation and further benefit the public,” he concluded.
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