Thailand will ban cryptocurrency payments from April 1
Thailand will ban the use of cryptocurrencies as a means of payment, Bloomberg reports, citing a statement from the country’s Securities and Exchange Commission. The decision does not apply to cryptocurrency trading and investment. The new restrictions will take effect on April 1.
The statement says that commercial operators, including crypto exchanges, will be prohibited from providing services for using digital assets to pay for goods or services. Also, crypto exchanges are required to stop advertising such opportunities.
The threat of a crisis forced the regulator to take up arms against cryptocurrencies: Thailand’s strict regulation of digital assets is taking place against the backdrop of an economic downturn. In addition, the popularity of the crypto sector among investors is growing and authorities say the use of digital assets could adversely affect the stability of the country’s financial system.
They fear that any alternative means of payment could diminish the effectiveness of monetary policy. The regulator notes that in the event of a liquidity crisis, the Bank of Thailand cannot help various financial institutions in forms other than the national currency.
At the same time, the country’s regulators recognize the importance of technologies such as blockchain, and Thailand was one of the first countries to have a law in place to support matters related to digital assets, the committee stressed. The Bank of Thailand also plans to start a pilot project to launch its digital currency.