Key Takeaways
- Thailand Central Bank releases statement on cryptocurrency
- The regulator stated that crypto-assets could not be used as legal tender
- Thailand known for its unique crypto regulations
The Bank made the warning in a press release stating that crypto-assets pose risks for users. Some of the risks noted included money laundering, cyber theft, and the notorious price swings associated with crypto assets.
The Thai Central Bank also acknowledged that some businesses had started to accept digital currencies like Bitcoin to pay for goods and services. It, however, warned that crypto-assets were not considered as legal tender in Thailand.
The report further highlighted that businesses that engaged in such practices would bear the full brunt of the risks involved in cryptocurrency transactions. This statement is similar to previous notices sent by the apex bank amid widespread adoption.
The Bank of Thailand also stated that the plans to launch a central bank digital currency (CBDC) was in operation. The digital Bhat is expected to respond to the growing threat of cryptocurrencies and facilitate next-generation payment systems in the country.
The financial regulator is also working on a legal framework for stablecoins. BOT had earlier stated its plans to regulate stablecoins following talks with industry stakeholders and other financial bodies in the country.
Thailand is known for its different regulations within the crypto industry. For example, the Thai SEC had proposed a controversial regulation earlier in the year stating that investors must have a minimum of 1 million baht ($30,000) before investing in crypto.
This caused major controversy within the crypto industry, with many stakeholders stating that it would exclude retail traders from exploring cryptocurrency. Following this backlash, the Thai SEC clarified its stance, stating that it would review the proposal.
What are your thoughts about the Thailand crypto warning?
