Thailand’s Security and Exchange Commission (SEC) announced on Wednesday its decision to ban cryptocurrencies as means of payment, effective from April 1, 2022. However, Thai people can still invest and trade digital assets.
The regulator highlighted several concerns, including the possibility of money laundering . In addition, it said that crypto payments do not provide an improved and efficient payments market due to volatility and high transaction fees.
Further, the announcement stressed the risk on the Thai financial systems from the usage of cryptocurrency as payments and the inability of the Thai central bank to step in and provide assistance in case of any loss of value.
“[Crypto payments] may affect the stability of the financial system and overall economic system, including risks to people and businesses,” the regulator said after a joint study of the industry by the Thai central bank and the securities market regulator.
Cryptos Are Popular
Digital asset investments and trading have become very popular in Thailand over the past few years. Though crypto payments have not become mainstream yet, many businesses have started to accept them.
The latest order came only a couple of months after the Thai authorities announced plans to regulate the crypto payments industry in the country.
After the law becomes effective, none of the Thai businesses can accept or advertise taking cryptocurrencies as payments. In case of any violation, the business will face legal actions, including temporary suspension or cancellation of the services.
But, both the central bank and the securities market regulator, along with other local government agencies, are certain about the benefits of underlying technologies, including blockchain and value, and support the use of technology to further innovation.
In addition to banning crypto payment, the Thai SEC proposed a new rule for disclosure of service quality and IT usage information from crypto businesses that will include brokers, exchanges and dealers.
