- Thailand’s Securities and Exchange Commission has banned the use of cryptocurrencies as a payment method.
Thailand’s Securities and Exchange Commission said in a statement today that it believes it could affect the country’s financial stability and poses a major risk to the country’s economy. crypto- announced that payments will be prohibited.
To pay for goods and services from April cryptocurrency Using the unit will be illegal in the country.
Crypto jeopardizes the stability of the payment system
Like many other regulators, the Thai SEC has discredited crypto’s use as a currency, saying it lacks the qualities of “hard money”. According to the regulator, such a payment method jeopardizes the stability of the country’s already “high-efficiency” payment system.
Cryptocurrencies backed by public blockchains do not follow security standards, making investor protection even more difficult, according to the SEC. In addition, the use of cryptocurrency to price goods is thought to prevent the Bank of Thailand from helping financial institutions during liquidity crises, according to the regulator.
Another of the main reasons for the decision is the volatility of cryptocurrencies. According to the Thailand SEC, although some crypto payment providers convert digital assets to baht instantly, there are still hidden costs in such a transaction. Also, using multiple payment systems can be costly and confusing for consumers. There is also the risk that digital assets will be used as a tool for money laundering or terrorist financing.
The country is not against crypto
The Thai SEC also emphasized that investing in digital currencies will continue to be legal in the country, although payments are banned. Officials even stated that the country supports innovations related to blockchain technology.
It’s also worth noting that Thailand is one of the leaders in the central bank digital currency race, with roughly $3.4 billion worth of cryptocurrencies held by Thais as of January.
In July 2021, the Thai SEC filed a criminal complaint against Binance, the world’s largest exchange, and in January, the company signaled its intentions to open a new branch in Thailand.