Thailand is jumping ahead of the crypto curve as the authorities plan to regulate the use of digital assets as a means of payment for goods and services. The Bank of Thailand, the Ministry of Finance, and the Securities and Exchange Commission jointly announced this update and noted that it deemed necessary to regulate the space to avert potential impacts on the country’s financial stability and economic system.
The authorities noted the rise of digital asset business operators and noted that a rise in the adoption of cryptos could potentially impact financial stability and the overall economic system.
It added in an official press release,
“Recognizing such risks and implications, regulators will consider exercising power in accordance with the relevant legal frameworks to limit the widespread adoption of digital assets as a means of payment for goods and services.”
The authorities added,
“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.”
The current decision by the Thai officials comes in after the crypto market saw a strong downtrend. A large portion of young investors in the country was delving into crypto expecting better return’s as the Thailand economy loses steam. However, as per SEC, even the use of crypto would not be much beneficial.
As per a statement released on Tuesday by the SEC,
“As the current payment system in Thailand is already highly efficient, the use of digital assets to pay for goods and services would not add many benefits to consumers and businesses.”
It, however, added that “relevant government agencies support the role and development of financial technologies such as blockchain in enabling financial innovation, without preventing investment in digital assets.”
The SEC has issued a bunch of guidelines for the new rules on digital assets as means of payment. It was seeking feedback from the people and the lines were open until 8th February before implementing them. It proposes to ban merchants from advertising and facilitating digital assets as means of payment and prohibits exchanges, brokerages from offering systems that help merchants receive payments in crypto.
If accepted, the digital asset operators will have to comply with the finalized regulation within 15 days.