Thailand has declared that bitcoin will be regulated as a form of payment for products and services in order to “avoid negative consequences on the country’s financial stability and economic system.” The announcement was made by the Thai Securities and Exchange Commission, the Bank of Thailand, and the Ministry of Finance.
In Thailand, cryptocurrency will be accepted as a form of payment.
The Thai Securities and Exchange Commission (SEC), the Bank of Thailand (BOT), and the Ministry of Finance (MOF) unveiled a plan to regulate cryptocurrency as a form of payment on Tuesday.
Following an assessment of the benefits and hazards of crypto assets, the three regulators stated that they “deem it important to regulate the use of digital assets as a method of payment for goods and services, in order to avoid potential consequences on the country’s financial stability and economic system.”
The regulators admitted, citing the fact that crypto business operators have been selling services connected to the usage of cryptocurrencies as a means of payment, including the establishment of crypto settlement systems:
This could lead to a greater acceptance of digital assets as a mode of payment, in addition to their use as an investment, which could have an impact on financial stability and the whole economic system.
Following that, the authorities detailed several crypto-related hazards to consumers and organizations, such as “price volatility, cybertheft, personal data leakage, or money laundering, among other things.”
“Regulators will consider using power in accordance with the appropriate legislative frameworks to limit the broad adoption of digital assets as a form of payment for goods and services,” the notice adds.
Ruenvadee Suwanmongkol, Secretary-General of the Securities and Exchange Commission, highlighted that the SEC, which oversees crypto enterprises, has a strategy to foster the development of digital asset businesses while also protecting consumers.
Sethaput Suthiwartnarueput, Governor of the Bank of Thailand, stated:
At the moment, broad acceptance of digital assets as a form of payment for products and services puts the country’s economic and financial system at danger. As a result, clear supervision of such activities is required.
“However, technologies and digital assets that do not pose such threats should be promoted by suitable legal frameworks to drive innovation and additional public benefit,” he added.