Thailand has issued new rules that prohibit the use of cryptocurrencies as a means to pay for goods and services, taking a complete U-turn from relaxing crypto-related laws in the country just days ago.
In a statement issued by the Thailand Securities and Exchange Commission, the regulator indicated that crypto exchanges and business operators were barred from acting in a manner that promotes the use of digital assets to pay for goods or services. However, the trading or investments in digital assets will not be affected as per the latest direction.
Citing that the wider use of digital assets threatens the nation’s financial system and economy, the new rules would be effective from April 1 and firms would have until the end of April to comply with the adjustments.
The new rules also dictate that digital-asset service providers halt advertising, promoting, and creating a goods and services payment route through digital wallets. Additionally, businesses were encouraged to caution clients against the use of digital assets.
The change in Thailand’s crypto stance comes soon after the government approved relaxed tax laws for investments in digital assets to help develop a friendly crypto environment. Fueled by young Thai’s during the pandemic, cryptocurrencies became increasingly popular in the country over the past year. Market data compiler Triple-A shows that 5.2% of all Thai’s own cryptocurrencies and the nation is slowly emerging as a crypto hub in Southeast Asia.