Central Bank Of Thailand Issues Warning Against Using Cryptocurrencies For Payments

A warning has been issued by the Bank of Thailand (BOT) for crypto holders utilizing crypto assets to be a means of exchange, stating that there may be a need to take serious regulatory measures if such practices expand to a large extent. On Thursday, it was stated by the bank that the owners of the digital assets (despite being a recipient or a sender) being involved in trading the assets in return for the services and goods might have to face the risks such as price volatility theft and money laundering.

The stance of the bank was restated by it mentioning that the actions by regulators and other similar consequences of using the cryptocurrencies such as ETH (Ether) and BTC (Bitcoin) would be upon the asset holders as these currencies are not yet declared as legal tender. It has been disclosed by BOT that it will assist the agencies like the Securities and Exchange Commission (SEC) in taking the required measures that would ensure that the cryptocurrencies do not cause any potential risks or harms to the common people as well as the financial and economic system, at the time of widespread adoption of digital currencies.

The central bank reported that the processes of making guidelines about the trading of the ‘Stablecoins’ and the development of a CBDC (central bank digital currency) of the country had not been completed yet. In April, a proposed framework for the release of CBDC has been published, revealing that the initial testing of the currency to be starting in the Q2 of 2020.  A lot of guidelines have been provided by Thailand’s regulators to the crypto businesses and the individual traders regarding the crypto except some currencies.

Recently this year, the security and exchange commission of the country suggested that at least 1 million baht, nearly $32,000, were required as the minimum required investment for crypto in Thailand; however, the proposal was rejected by the majority of the citizens. In the previous month, a notice has been issued by the officials of SEC announcing that a prohibition was imposed on the Thai exchanges to restrain them from utilizing the products such as tokens issued by exchange, nonfungible tokens, fan-based tokens, and meme-based tokens.

In the meantime, there is a continuous spike has been monitored in the trading volume of crypto on the overall exchanges of the country.