Regulation of Crypto-currency in Thailand
The Bank of Thailand (BOT), the Securities and Exchange Commission of Thailand and the Ministry of Finance in the month of January 2022 released a press release analyzing the usage of cryptocurrencies and its impact on the financial health of the country. The regulators stated that they shall try to regulate the use of digital currencies so that it does not possess a risk to the financial system of the country. pressed concerns in relation to the supervision that is required in this regard.
Steps taken by the Government of Thailand
The financial stakeholders recently released a consultation paper to seek views from the concerned people on digital assets. The consultative process, however, now closed, will see its implications in the months that lie ahead. The Government has also invited the comments of the public on the regulatory approach on the ready-to-use utility tokens and digital asset exchange supervision. The consultative process on this regard ends on June 29, 2022. In essence, the government of Thailand is trying to take the views of the general public along with the critical approach that is being followed by the financial stakeholders of the country.
Are Bitcoin Accept in Thailand?
Thailand’s financial regulator has banned all cryptocurrencies as a means of meeting payment obligations, citing the risks they pose to the country’s financial stability. ..
What Does This Mean, In Terms of Bitcoin’s Legality?
The Thai government has placed an outright ban on all activities that went in the payments through Bitcoins and all other forms of digital currencies beginning from April, 2022. When it comes to the legality of Bitcoins and other cryptocurrencies, the government has not posed any ban on the holding and trading of cryptocurrencies. Meaning thereby, that a person can hold Bitcoins along with the other allowed crypto currencies in Thailand. The same can be used to trade and earn a revenue out of the same. However, Bitcoins cannot directly be used to purchase goods. Therefore, in terms of its legality, it is per se legal, however, a dark cloud is cast upon the future of Bitcoins and other cryptocurrencies in Thailand. The financial regulators in the months to come will shed more light upon the legality of the digital payments’ world in Thailand. Until then the speculations will continue to persist. ..
Why Did Thailand Take This Step?
The Thai government has stated that it is not comfortable with Bitcoin as a legal tender because of its volatility and lack of regulation. This is causing some people in Thailand to invest in digital currencies, which the government doesn’t like. In January 2022, the Thai government shared information that showed that the amount of digital assets held by Thai citizens had increased drastically in just a few years. ..
The United States’ in Picture
The President of the USA through an Executive Order on March 09, 2022 has ordered various departments to work closely in ensuring a safe and secure environment for developing digital assets. This order is important because it is designed to help protect Americans’ privacy and security when using digital currencies and payments. By ordering the departments to work together, the President is hoping to make sure that people can easily use bitcoin and other digital currencies without fear of being scammed or hacked.
Thailand has taken its initial baby steps and has been in the right direction. For future entrepreneurs who see the chances of having a trading platform in some Asian country, it is important to note that there are still many questions that need to be answered before such a platform can be established.
This is an offer that could be lucrative for entrepreneurs who have been interested in Thailand as a potential location for digital currencies. With a bit of analysis and track on the steps being taken by financial regulators in Thailand, it may be possible to identify any potential issues that could prevent such an offer from becoming a reality.
