May 20, 2022
Digital currencies, soon to be banned in Thailand

Thailand has announced that it will ban the use of cryptocurrency as payment for goods and services from April 1st, following discussions between the Securities and Exchange Commission and the Bank of Thailand.

The wider use of digital assets has the potential to impact economic stability in the country, the SEC said in a statement. Under the new regulations, businesses will be unable to provide services that facilitate crypto payments or promote the use of digital assets as payment. Trading and investing in digital assets are unaffected by the rule change.

Businesses that offer services targeted by the regulatory change have 30 days to comply with the new rules, the SEC added.

The move comes following a boom in crypto adoption in Thailand. The Thai central bank has long rallied against using digital assets as a payment method, warning that it risks destabilizing the Thai baht. In January the government said that 114.5bn baht was held in digital assets by Thai citizens, up from 9.6bn just two years previously.

Thailand is by no means the first country to put such regulations in place. Indonesia introduced similar restrictions in January and South Korea has also put strict rules into force governing the use of digital assets.

The move is part of a trend of governments and regulators across the planet growing more wary of the impact cryptocurrencies can have on the global economy. Authorities in most developed economies have either put their own regulations in place or are looking into doing so.