Thailand Propose Crypto Regulations Amid Countrywide Rise in Trading Activity
According to recent reports, Thailand’s Central Bank plans to introduce crypto regulation rules to minimize the risks in their trading. The report also said that the Central Bank intends to enhance investor protection as many people are attracted to these assets.
Thailand to unveil detailed rules for digital assets to minimize risks to the financial system and provide greater investor protection, the central bank says https://t.co/QDCalWLfYF
— Bloomberg Crypto (@crypto) December 23, 2021
Thailand Central Bank Says Crypto Regulation Will Come Soon
The Bank of Thailand is currently planning to release a consensus paper to help determine the best ways to regulate cryptos. Bloomberg also reported that the Bank of Thailand plans to ensure that cryptos are secure for investors by minimizing their risks.
BoT will release a paper on “Financial Landscape” early next year, seeking a consensus on crypto regulations. According to the Bank’s Governor, Sethaput Suthiwartnarueput, The paper will determine the best rules for cryptos, green finance, and such innovations. He added that the incoming regulations would help support innovation and financial inclusion by reducing the systemic risks involved.
The Governor also noted that his Bank is working jointly with the country’s Finance Ministry and Securities and Exchange Commission. He said this joint effort would help determine the redlines for cryptocurrencies there.
Per a November report by the Thai Securities and Exchange Commission, the trading volumes of cryptos have surged by more than 1,100% since November 2020. They added that Thai now has $6.6 billion in crypto trading volume.
Thailand’s Crypto Regulation Saga
This report about the Central Bank of Thailand seeking to introduce crypto regulations comes after a high crypto involvement in November. In the second week of December, the authorities of Thailand reiterated by asking all commercial banks in the country to cease giving crypto services.
Per a senior BoT director, Sakkapop Panyanukul, crypto adoption could make it difficult to regulate the economy. He also explained that since cryptos do not have any backing, they are blank coins. Chai- Anant of BoT also said that the volatility of cryptos and their potential abuse in malicious intents makes them risky.
Per a report from Binance, the Governor of the Central Bank announced that the regulations would help minimize risks of cryptos to the economy. He also added that the banks aim at introducing redlines for cryptocurrencies, and the use of cryptos for payments will stand as one of those lines.
These reports from Thailand come when the Central Bank is preparing to launch its CBDC. Therefore, this country might follow China’s steps to introduce a blanket ban. However, other administrators in Thailand want different regulation structures for cryptos. In particular, the Tourism Ministry wants cryptos to be supported to attract BTC Whales and other wealthy crypto stakeholders.