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- In continuous efforts to regulate the crypto market, the Thailand Securities and Exchange Commission(SEC) banned crypto transactions.
- The notice issued by the SEC notes that the crypto payments are a risk to the financial stability of the financial system and impose risk on the general public.
- Businesses found not working in accordance with the new rules will have to face legal actions such as temporary suspension and cancellation of services.
The Thailand Securities and Exchange Commission (SEC) has banned any transaction involving cryptocurrencies in accordance with its continuing efforts to regulate the crypto market for the general public. In parallel to this, the Commission also proposed a new rule to stop the activities such as service quality and IT usage information from crypto businesses, including dealers, exchanges, and brokers.
After the discussion with the Bank of Thailand (BOT), businesses in the region are being discouraged from accepting payments in crypto from April 2022, as per the notice issued by the Thai SEC.
Crypto Payments can threaten the stability of the financial system and overall economic system and impose risks to the general public and businesses, concludes the joint study by SEC and the BOT.
Price volatility, money laundering, cyber theft, and personal data leakage are some of the risks highlighted by the SEC. After the implementation, the businesses in Thailand will be blocked from establishing systems, tools, and wallets for doing transactions in cryptocurrencies and advertising accepting crypto payments.
Any business found not to be in compliance with the new crypto laws will have to face legal actions, including cancellation of the services and temporary suspension.
In order to facilitate further innovation, the government agencies, including BOT and SEC, do recognize the enormous benefits of crypto assets and its underlying technology, blockchain.
Moreover, the Thai SEC proposal aims to further ensure investor security by gauging the quality of the services delivered by the crypto businesses. According to a rough translation, the SEC proposes digital asset operators to:
The proposal of Thai SEC wants to ensure inverter security by determining the quality of the service offered by the crypto businesses. The SEC proposes digital asset operators to provide reports on the service quality and system capacity utilization reports to the SEC office within the 5th day of the following month, on a monthly basis.
The reports also direct the crypto businesses, within the same timeline, to update the reports on their official website.
The SEC also shared a graph that further highlights the various complaints received by in over the span of 12 months. The data further showed that the investors from Thai faced the highest problems in relation to shopping, making it a potential reason behind the ban on crypto payments.
As per the reports from Dec 20221, the government acknowledged that it is working on the latest framework of regulations by describing the red lines for the crypto industry.
According to the reports, the Finance Minister of Thailand has lightened the regulations regarding crypto tax in order to promote digital asset investments.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
