Thailand SEC announces ban on crypto payments

TL; DR Breakdown

• Thailand SEC ban crypto payments
• The Commission highlights ills of crypto trading
• Thailand plans to explore new technologies

The Securities and Exchange Commission of Asian country Thailand has announced a ban on all payments via digital assets. This is in a bid to tackle the issue of irregularities in the sector while establishing a regulated market environment. In the same vein, The Thailand SEC has also mandated crypto entities to henceforth submit documents on how they use various IT information and how good the quality of their services are.

Thailand SEC highlights risks of crypto trading

The document released by the Thailand SEC noted that after deep talks with the central bank of Thailand, entities should desist from accepting crypto payments starting from April 2022. The Commission mentioned that a recent study carried out by both parties showed potential damage to the country’s financial system if they fail to curb it now.

It also says crypto payments posses risks to everybody in the economy. Some of the risks highlighted by the Thailand SEC were theft of assets, swings in prices, and money laundering. It also mentioned that it is wary of the personal information of users getting into the hands of the wrong actors. If this system comes into place, businesses in Thailand will no longer be able to accept payments in digital assets, among other limitations.

Thailand wants to explore new technologies

The Thailand SEC said that any business found wanting when the directive kicks into action would be sanctioned. It also mentioned that such businesses could have their license stripped, which could cause temporary or permanent suspension. However, the body says it is still looking into ways to leverage the technology as the joint study showed that it could be a tool for the future.

The body also mentioned that this directive was concluded off the back of various moves to ensure services in the crypto sector are of top quality. In the same line, the Thailand SEC wants the entities to publish the reports sent to them on their official websites every month. A document shared by the SEC showed various issues emanating from the crypto sector warranting the said directive.

The document noted that most of the issues were from investors trying to shop using digital assets, one of the trigger for the ban. As far back as December, Thailand mentioned that it would create a red line for businesses and individuals in the crypto sector. In the early part of this month, Thailand announced a simpler crypto tax that would encourage more people to embrace the sector. One of the key benefits of the crypto tax was an exemption of traders from the 7% VAT.