Thai authorities seeks to introduce crypto regulation for payments

• Crypto regulations for payments is being scrutinized by Thai authorities
• Bank of Thailand, Ministry of Finance, and the Thailand SEC have introduced a set of guidelines
• Thailand authorities have noted that cryptocurrency firms have expanded their business to offer payments services using digital assets
• Thai regulator seeks to ban merchants from advertising and facilitating crypto payments

Crypto regulation is being scrutinized by every nation following the mainstream adoption of digital assets. Over the past year, the crypto ecosystem has witnessed notable growth and adoption. Notably, an entire nation is hodling the flagship crypto asset in its treasury. As the craze for digital assets continues to grow the community seeks to make cryptocurrency payments. Following the scenario, the Thailand Securities and Exchange Commission has proposed a set of guidelines to limit the use of virtual currency for payments.

Thai financial authority aims to bring crypto regulation

Thai’s financial regulators are seeking to regulate the use of cryptocurrency as a means of payment for goods and services. Notably, the Bank of Thailand, Ministry of Finance, and the Thailand SEC have introduced a set of guidelines.

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According to the press release, regulators are deemed to exercise their power to limit the use of digital assets for payments. Moreover, they will issue new guidelines for certain crypto that support the financial system and innovation without posing systemic risk.

Thai SEC seeks comment on a consultation paper

According to the statement, Thailand authorities have noted that cryptocurrency firms have expanded their business to offer payments services using digital assets. Moreover, they have solicited payments business by facilitating the acceptance of virtual currency. According to the regulators, such efforts may widen the use of cryptocurrency as a means of payment. Indeed, such utility is away from crypto’s use as an investment, which could adversely impact financial stability, consumer privacy, and cybercrime.

Following the facts, the Thailand Securities and Exchange Commission separately seeks comment on a consultation paper on crypto assets until February 8, 2022.

No cryptocurrency payments

According to the proposed guidelines, the regulator seeks to ban merchants from advertising and facilitating crypto payments. Meanwhile, the authorities are looking to halt exchanges and brokerages from providing such systems that would help merchants receive and send crypto for day to day transactions. Such facilities include QR codes and e wallets.

Furthermore, the regulators also seek to limit on transferring assets between accounts. For instance, Thai Baht made from selling digital currency can only be transferred to the seller’s account.