Thailand has decided to issue strict regulations for cryptocurrency use in the purchase of goods and services within its borders.
This development came via a joint statement by financial stakeholders and the country’s regulator, where they said that the increasing relevance and widespread utility of virtual assets for payments of goods and services in the country threatens the kingdom’s economic stability.
Financial watchdogs in the kingdom are now aiming to enforce new compliance and regulations that target the country’s partial adoption of crypto for payment and other related activities.
Thailand’s stakeholders and regulators, the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) in a joint conference revealed that they plan to defuse the threat to the kingdom’s economy in the form of unregulated crypto utility and step onto the stage that is the national crypto industry.
Thai regulators believe that digital assets businesses that operate across the country have extended the scope of their crypto utility indiscriminately and that their actions undermine the interests of Thailand and its citizens. The threat underpinned by crypto adoption in the country could destabilize the kingdom’s economic framework going forward, an SEC spokesperson revealed.
Authorities Target Merchants And Businesses
Thailand authorities are now targeting companies and businesses that feature crypto payment gateways of any kind, including the development of settlement frameworks outside their balance sheet.
In a bid to restrict the widespread adoption of virtual assets in the country, regulators have revealed that they will be exercising their judicial and legislative power to clamp down on crypto enterprises and related services outlets nationwide.
The unregulated utility of virtual currencies might not only threaten Thailand’s economical framework collapse but could also exploit consumer and businesses interest via price volatility, cybercrime, phishing and personal data theft, and money laundering among others, the joint statement reads.
The joint stakeholder statement also features the Bank of Thailand (BOT) governor Sethaput Suthiwartnarueput’s original input that hints at the deployment of supervisory bodies that will efficiently monitor and strictly supervise the country’s crypto industry.
Suthiwartnarueput additionally revealed that although the BOT already deals with assessing risks and benefits of the crypto sector, it is very important to provide sufficient and extensive supervision for the Thailand crypto industry.
Thailand To Develop Regulatory Framework
The review report has also stated that additional guidelines were to be published for the digital assets class that are in favor of the new financial system and incoming upgrade devoid of any systematic risk.
Thailand’s latest regulations move emerges in a sensitive timeframe as the country tussles with cryptocurrency monitoring and regulations issues. The Asian kingdom has been churning out policies aimed at a comprehensive but strict regulation of ita crypto industry.
Earlier this month, Thailand through the office of the Revenue Department revealed its ambition to completely regulate the local crypto industry when it announced that new tax measures targeted at claiming floating tax revenues via crypto trading were in the works.
Inputs from relevant stakeholders and the general public will be considered to develop a relevant and comprehensive regulations framework that will bring home a win, the regulators concluded.