Ban on crypto payments in Thailand

Thailand will prohibit the use of digital assets as means of payment for goods and services. The cryptocurrency sector remains a controversial phenomenon in Thailand. Now the authorities are planning to introduce a ban on cryptocurrency as the form of payment from April 1, as they believe that this could endanger the country's financial sector and economy.

A report from BNN Bloomberg says that the loсal supervisory authority will order crypto exchanges and related firms to stop providing digital asset payments functionality. This was claimed in a statement by the Securities and Exchange Commission, published on Wednesday. All this is taking place against the background of conversations and the future attitude of the country towards the cryptocurrency industry as a whole. The state intends to introduce new rules, however the ban will not apply to trading and investment in cryptocurrency assets, according to the SEC of Thailand. Restrictions on cryptocurrencies such as Bitcoin for commercial transactions correspond to regulations in Europe, the UK, South Korea and Malaysia. The reason for this ban was due to the fear of cryptocurrency trading by investors who are trying to make a profit against the background of the country’s economic drawdown. Commercial banks have been advised to refrain from actions related to the trading of digital assets due to high volatility and uncertainty. Citing the regulator, the development of any price unit other than the Thai baht will boost economic activity and reduce the effectiveness of monetary policy transmission. If there is a liquidity crisis, then the Bank of Thailand will not be able to cooperate with financial institutions if it is not in the national currency. Also, with the new government regulation, companies will not be able to start advertising and create a simplified payment service through cryptocurrency wallets. All companies will be required to warn their customers against using digital wallets when paying for services and, at the very least, will have the right to block the accounts of their users if they violate the newly introduced rules. The Bloomberg report also states that as of the beginning of this year, the Thais had more than $3 billion worth of cryptocurrencies at their disposal, which shows the growth and interest of the population in blockchain technology.