Thailand To Ban Use Of Digital Assets For Payments

Thailand is set to ban the use of digital assets to pay for goods and services from 1st April, 2022.

This decision comes in the backdrop of the discussions between the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC) to regulate the activities of the digital assets business operators.

The SEC maintains that such a move is critical for the country's financial stability and economy.

The BOT has explicitly said that it does not support cryptocurrencies as a form of payment, Reuters reports.

It will also be conducting a briefing on regulatory guidelines for the digital assets business of banks on Wednesday.

The Thai regulator claims that the restrictions on cryptocurrencies are similar to the prevalent regulations in Malaysia, South Korea, Europe and the UK.

The regulator has said that development of any unit of pricing other than the Thai baht will have two key consequences.

It will enhance the cost of economic activities and also cut down the efficiency of their monetary policy transmission.

The Business Times reports that this crackdown on digital assets comes while young investors are increasing their crypto trading in the country.