Thailand does not ban cryptocurrencies, but warns of volatility

Thailand does not prohibit the use of cryptocurrencies and payments with cryptocurrencies, but warns of large price fluctuations and that the use of cryptocurrencies must accept the risks associated with the use of cryptocurrencies. So please read more in our latest crypto news.

Sakkapop Panyankul, senior director of the monetary policy department of the Bank of Thailand, made it clear that the central bank does not ban cryptocurrencies and their use is not illegal. He stated that the Bank of Thailand is currently discussing cryptocurrency regulation with crypto-related authorities and stakeholders, aiming to limit consumer risks related to payments. The director noted that some people may have used cryptocurrencies to pay for goods and services in Thailand and noted that using cryptocurrencies is not illegal, but users must be able to take risks. The Thai central bank says that cryptocurrencies are not legal tender in the country and that their use as a medium of exchange constitutes an exchange transaction between digital asset owners and the provider of goods and services, with the payer and recipient assuming all associated risks. .

The director said if only the widespread use of the currency would affect the central bank’s ability to oversee the economy. Another senior director at the Bank of Thailand stated that most central banks share the same concerns about cryptocurrencies that pose a risk to financial stability, stating:

“Currently, the Thai central bank is not banning the use of digital assets to pay for goods and services due to their price volatility, but is concerned.”

Meanwhile, the Thailand central bank said it is deterring commercial banks from trading cryptocurrencies due to the high risks associated with high price volatility:

“We don’t want banks to be directly involved in trading digital assets because banks are (responsible) for deposits from customers and the public and there is always a risk.”

The spokesman noted that if the company were a shareholder, this would be an entirely different matter. Siam Commercial Bank, one of the largest banks in the country, has announced that it will buy a 51% stake in cryptocurrency exchanges. Cryptocurrencies have grown in popularity in Thailand as a means of payment for goods and services, and the central bank has even warned against using digital assets as a means of payment, with the country’s prime minister warning investors against investing that they can be volatile. and speculation.