Thailand warns of the risks involved in using cryptocurrencies as a means of payment

The Central Bank of Thailand says more and more companies want to pay with cryptocurrencies like Bitcoin and Ether. The central bank reiterates its stance on cryptocurrencies and warns of the risks of using them as a means of payment.

Thailand warns of the risks involved in using cryptocurrencies as a means of payment

The Central Bank of Thailand (BOT) issued a warning on Thursday titled “Beware of using digital assets as a means of payment for goods and services.”

The announcement explains that a number of companies have recently started charging payments for goods and services in cryptocurrencies, citing Bitcoin (BTC) and Ether (ETH) as examples.

The Thai central bank has confirmed its stance that digital assets are not legal interests and do not support their use as a means of payment for goods and services. The bank made it clear that the use of cryptocurrencies as a means of payment carries risks for both buyers and sellers, “such as price fluctuations, cyber theft and money laundering”.

The Central Bank of Thailand made it clear:

If the use of digital assets as a means of payment for goods and services becomes widespread, the BOT will coordinate with the Securities and Exchange Commission (SEC) and other relevant authorities to take the necessary steps to ensure they are not at great risk to the public or the economic and financial system.

The Thai SEC recently banned regulated crypto exchanges by offering services related to crypto memes, fan tokens, and non-fungible tokens (NFTs).

The BOT added that it is still in the process of developing a central bank digital currency, or CBDC, and setting guidelines for domestic fiat-backed stablecoins. A proposed roadmap for CBDCs released in April states that preliminary testing processes are expected to begin in Q2 2022.

With the exception of CBDCs and certain stablecoins, regulators in Thailand have issued several guidelines for individual crypto traders and companies.

Earlier this year, the country’s Securities and Exchange Commission proposed a minimum income requirement of 1 million.Last month, SEC officials issued a notice that Thai exchanges are prohibited from using meme-based tokens, fan-based tokens, unusable tokens and To trade tokens.

The security regulator has also filed a criminal complaint against Binance for illegal crypto business in the country.

Thailand warns of risks in using crypto as a means of payment – Thai SEC files criminal charges against Binance

The Thai Securities and Exchange Commission (SEC) has filed a criminal complaint against Binance, accusing it of illegal activities with digital assets. They claim that the business that Binance runs is not licensed. This started when the SEC first wrote a warning letter to Binance asking the company to explain its illegal activities. But Binance has been silent since then and has not responded.

Any violation of Thailand’s Digital Asset Trading Decree will result in up to 5 years imprisonment along with a fine of $ 500,000 or $ 15,500. Most recently, Binance also had to accept setbacks from other countries. Just last week the FCA banned them from offering derivatives to UK clients.

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