Thailand is adding regulations about the use of digital assets for product and service payments. Government authorities kind of fear that cryptocurrencies could jeopardize the country’s financial and economic institutions.
The Bank of Thailand, the Securities and Exchange Commission of Thailand, and the Ministry of Finance stated in a joint statement on Tuesday that they plan to employ legal frameworks to manage the widespread use of digital assets for settling transactions.
This news was announced through Twitter by Bitcoin Archive:
💥BREAKING: Thailand will regulate #Bitcoin as a payment method.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) January 25, 2022
“BREAKING: #Bitcoin will be regulated as a payment method in Thailand.”
However, there are still numerous procedures to be taken before this may happen. Operators of digital asset businesses have expanded their offerings to include services linked to the usage of digital assets to pay for products and services. Some have approached businesses with the offer of assisting merchants and enterprises in accepting digital assets as payment for products and services, such as through the establishment of digital asset settlement systems.
This could lead to a greater acceptance of digital assets as a form of payment, in addition to their use as an investment, which could have an impact on financial stability and the entire economy. Consumers and organizations may face additional risks as a result of this use of digital assets, including price volatility, cyber theft, personal data leakage, money laundering, and so on.
Authorities will explore using their authority in accordance with applicable legal frameworks to prohibit the broad use of digital assets as a form of payment for goods and services. Additional regulatory guidelines will be issued for digital assets that are beneficial to the financial system and financial innovation while posing no systemic risk. Feedback from key stakeholders and the general public will be taken into account.
Mr. Sethaput Suthiwartnarueput, Governor of the BOT, said:
“The BOT takes into consideration both the risks and benefits of digital assets, including the underpinning technologies. At present, the widespread adoption of digital assets as a means of payment for goods and services poses a risk to the country’s economic and financial system. Therefore, clear supervision of such activity is needed. However, technologies and digital assets that do not pose such risks should be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public.”
Regulators have produced a set of instructions for the new laws governing the use of digital assets as a payment method. Before adopting the plans, the SEC is seeking public feedback through February 8th. Operators of digital assets will have 15 days to comply with new restrictions if they are finalized.