In a joint press release, the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) stated that using cryptocurrencies in payment poses a threat to the country’s financial sector. The agencies acknowledged the widespread usage of digital currencies as a payment mode, but regulators need to focus on protecting consumers. Furthermore, the regulators stated that they had reviewed the benefits and shortcomings of digital currencies in payment and the risks of price volatility, cybercrime, data privacy, and money laundering stood out. The regulations are expected to focus on select cryptocurrencies while also factoring in the importance of financial innovation. According to Thailand’s SEC Secretary-General Ruenvadee Suwanmongkol, besides regulating the space, the agency has an obligation to promote the development of digital asset businesses alongside consumer protection. The regulators, however, did not reveal when the regulations are expected to be unveiled.
Thailand increasing crypto sector regulations
With Thailand emerging as a critical cryptocurrency market, the country has recently increasingly focused on enacting laws for the sector. Recently, the country’s finance ministry planned to implement a 15% capital gains tax on profits from cryptocurrency trading. Similarly, in December, BOT cautioned banks against direct involvements with cryptocurrency trading platforms. The bank cited risks such as market volatility. The growth of crypto in the country is highlighted by a November 2021 SEC report that showed that digital currency transactions amounted to 205 million baht ($6 million). Notably, the month registered the last Bitcoin all-time high of almost $68,000.
