​The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and Ministry of Finance (MOF) have jointly reviewed the benefits and risks of digital assets, and deem it necessary to regulate the usage of digital assets as a means of payment for goods and services.

The three institutions intend to avert potential impacts on the country’s financial stability and economic system, the Bank of Thailand, the Securities and Exchange Commission and Ministry of Finance said in a joint statement.

According to the joint statement, some digital asset business operators have solicited businesses by offering to facilitate merchants and businesses in accepting digital assets as payment for goods and services such as by setting up digital asset settlement systems.

The use of digital assets in this manner could also pose further risks to consumers and businesses through price volatility, cybertheft, personal data leakage, or money laundering, etc.

The Bank of Thailand, the Securities and Exchange Commission and Ministry of Finance

Trading and use of cryptocurrencies have gained momentum in Thailand with crypto traders and real estate developers such as BitKub and Siam Real Estate accepting digital assets as payments.

This may result in a wider adoption of digital assets as a means of payment, aside from its usage as investment, which could potentially impact financial stability and the overall economic system.

The Bank of Thailand, the Securities and Exchange Commission and Ministry of Finance

 Further regulatory guidelines will be issued for certain digital assets that are supportive of the financial system and financial innovation while not posing systemic risks. Feedback from relevant stakeholders and the general public will be taken into consideration to determine the appropriate regulatory frameworks.

About the author

Bangkok Correspondent at Siam News Network

Bangkok Correspondent for Siam News Network. Editor at Thailand Business News

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Thai Banks remained resilient in the first quarter of 2022 (BoT)

Banks’ overall loan quality in the first quarter of 2022 remained stable from the previous quarter owing primarily to debt restructuring and financial assistance measures.

Thai banks face systemic risks amid uneven recovery (S&P)

The long period of low activity, especially in the tourism sector, has hurt businesses and reduced household incomes in Thailand

Fintech: the natural response to a quarantined economy

During the global lockdown, MSMEs needed Financial Technology (fintech) to keep business operations going. FinTech companies also provided an intrinsic relief to business owners that were at risk of getting sick by continuing to operate manually.