Thailand To Regulate Cryptocurrencies As Means of Payment

The financial authorities of Thailand have all teamed up in a bid to come up with regulations that will limit the use of digital assets as a means of payment in the region. Additionally, the regulators will also be issuing new guidelines for certain digital assets that pose no threats to the financial system.

According to a Tuesday press release, Thai Ministry of Finance, the Bank of Thailand, and the Securities and Exchange Commission of Thailand will be looking to exercise their power to check the use of crypto for payments.

Thai SEC Also Considers Limiting Crypto Transfers

According to the joint statement earlier released by Thai regulators, crypto firms are beginning to expand their services to offer crypto-based payment services. However, if the situation is not quickly contained, it might lead to a wider use of crypto as a means of payment — an obvious deviation from its original use as an investment. And of course, this will undoubtedly impact financial stability in a negative way, while also increasing the rate of cybercrime.

Meanwhile, the Thai SEC is separately seeking comment on a consultation paper on digital assets up until February 8.

The paper is looking to ban merchants from any forms of advertisement that will bolster the use of digital assets as means of payment. In addition to this, the paper is also proposing to ban exchanges and brokerages from providing such systems as e-wallets and QR codes, that will help merchants to receive crypto payments.

Even after the consultation, limitations will also be placed on the transfer of assets between accounts. That is, any amount that is made from selling crypto assets can only be transferred to the seller’s account and none other.

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Mayowa Adebajo is a fintech enthusiast with a decade-long experience writing news stories and creating content generally. When he’s not writing, he’s either talking politics or discussing sports.