Thailand Adopts Rules Restricting Cryptocurrency Payments From April – Regulation Bitcoin News

Thailand has decided that cryptocurrency payments will be limited by its regulators. The authorities consider the country’s current payment system efficient and insist cryptos would only bring risks for the financial system, economy, people and businesses.

Thailand SEC Issues Regulations Restricting Digital Assets Use for Payments

Thailand’s financial regulators are taking measures to stop cryptocurrency payments being used in goods and services. They cite a variety of economic and financial threats. On Wednesday, the country’s Securities and Exchange Commission (SEC) announced rules designed to discourage digital asset operators from offering and supporting such services.

The move comes after discussions with the Bank of Thailand (BOT) on the benefits and risks of digital assets, during which the two institutions recognized the need to adopt regulations preserving the stability of the nation’s financial system and economy, and preventing risks for its citizens and companies. These risks included price volatility, money laundering, data theft, and leakage of personal information.

Future supervision by the Thai SEC of providers within the sector will be done to verify that they don’t offer digital assets for payment. However, these new regulations will not block cryptocurrency trading and investment. According to the regulator:

Digital asset operators of all types must not offer services or behave in ways that promote or encourage the payment of goods or services using digital assets. This includes advertising, soliciting, or making it appear to be available for merchants to purchase goods or services.

The commission stated that companies should not create systems or tools for crypto payments, nor open wallets to do so. The commission stated that if a cryptocurrency platform discovers its customers use trading accounts to pay, they must inform the clients and take any further actions, such as temporary suspension of service or termination.

According to the SEC, these new rules will be in effect as of April 1, 2022. The SEC stated that companies providing services subject to the restrictions have 30 days from the date of the regulation’s implementation.

BOT and the SEC announced in January their plans for crypto payment regulation. This regulatory update is in spite of previous efforts to allow such payments in Thailand (a very popular tourist spot). The tourism sector recently met with the central bank in order to discuss alternative payment options, such as crypto for Russian tourists whose country was placed under sanctions following its invasion of Ukraine.

Are you concerned that the new regulations will significantly reduce crypto payments to Thailand? Leave your comments below.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.