The Bank of Thailand is growing increasingly wary of cryptocurrencies and plans to introduce new guidelines to curb activities for individuals and businesses.
The Bank of Thailand is planning on releasing a consultation paper on the “Financial Landscape” in January 2022. The report will seek a consensus for what it calls “red lines” for crypto users and businesses. The central bank’s Governor Sethaput Suthiwartnarueput specifically stated that cryptocurrencies as payment channels are one of those red lines and will not be tolerated.
The Bank of Thailand is aiming to begin testing its own CDBC next year.
According to the Bangkok Post report, the new regulations aim to minimize risks to the financial system and provide greater investor protection. The central bank is aiming to begin testing its own CDBC next year, so it is possible that Thailand will follow China in pushing crypto aside in favor of its own state-controlled currency. The Bank of Thailand has repeatedly issued warnings about cryptocurrencies and cautioned commercial banks against direct involvement in cryptocurrencies. Earlier, a central bank senior director cited risks associated with high price volatility and stated, “We don’t want banks to be directly involved in digital asset trading because banks are (responsible) for customer deposits and the public, and there is a risk.”
BoT senior director warned companies on accepting crypto payments.
Earlier, a senior director of the Bank of Thailand had warned companies on accepting crypto payments stating that if “other currencies” were widely used, “it will impact the central bank’s ability oversee the economy.” The central bank crackdowns come when a number of Thailand’s leading commercial banks have expressed interest and have invested in crypto platforms. As reported earlier, Thailand’s oldest and first commercial bank, Siam Commercial Bank, purchased a majority stake in the leading Thai crypto exchange Bitkub