Thailand declares ban on cryptocurrency payments
Thailand’s financial chiefs have dramatically announced a ban on using cryptocurrency as a means of payment.
The sudden rule – which does not affect holding or investing in crypto – comes into effect from April 1.
In early 2021, Thailand’s Securities and Exchange Commission said it wanted to create a framework of regulation to accommodate digital assets as well as attracting the crypto industry to Bangkok.
Few, however, anticipated this approach would lead to today’s announcement effectively outlawing crypto payments for its population of 66 million people.
Citing money laundering concerns, the SEC suggested the country’s central bank simply lacked the capacity to provide assistance in the event of financial irregularities.
The body did, however, stress that it would be only enforcing a ban on the use of cryptocurrency for payments, and not on trading or investing in digital assets.
A joint statement from the SEC and the Bank of Thailand said that crypto payments “may affect the stability of the financial system and overall economic system including risks to people and businesses.”
It added: “However, the BOT and the SEC, as well as other government agencies, recognise the benefits of technologies behind digital assets such as blockchain and value and support the use of technology to further innovation.”
More to follow.