Thailand Bans Cryptocurrency Purchases, Plans New Guidelines For Digital Assets

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To prevent negative effects on financial stability and the economy, the Bank of Thailand (BOT), Securities and Exchange Commission (SEC) and Finance Ministry have banned cryptocurrencies from purchase.

Retailers and entrepreneurs wishing to use cryptocurrencies for payment have been facilitated by companies operating in the digital asset space, encouraging the public to use cryptocurrencies for payment in addition to investment.

However, this places people at risk of price volatility and hence monetary loss, cyberattacks, personal information leakage or being used as tools for money laundering.

In an effort to promote digital assets in line with the country’s financial system and customer interests, the ministry, BOT, and SEC announced they would produce guidelines.

BOT Governor Sethaput Suthiwartnarueput said clear and appropriate guidelines related to digital assets are necessary to ensure that innovations benefit people.

Ruenvadee Suwanmongkol, SEC secretary-general, announced that the commission will hold hearings on regulations governing digital asset use for payment of products and services.

One of the digital assets on the blockchain is cryptocurrency, which is used for trading good, services, and other assets. Unlike fiat currencies, the price of cryptocurrencies can fluctuate depending on market mechanisms and trading demand.

Most central banks have not accepted cryptocurrency for debt payment under laws, except in El Salvador.

Bitcoin and Ethereum, for instance, are popular types of cryptocurrency among people who believe that cryptocurrencies will play an increasingly important role in finance and investment.

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