The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) and the Ministry of Finance (MOF) have jointly decided to regulate the use of cryptocurrency as a medium of exchange. They cited the threat of financial instability and crime as the main justifications.
The BOT announced its regulatory decision in a press release earlier today. The first thing to do is to recognize how digital asset companies are developing the function of cryptocurrency as a medium of exchange.
At the same time, giant companies like Google and Mastercard at this point also intend to involve cryptocurrency in their services. Meanwhile, companies like OpenNode are building Bitcoin payment networks via flash networks for organizations like Perth Heat.
Thai regulators see this development as an indication that cryptocurrencies are more likely to have the potential to be used as a tool of exchange. This is seen to cause financial instability.
"The use of cryptocurrency in this way can pose further risks to consumers and businesses through price fluctuations, cyber theft, leakage of personal data, or money laundering, etc."
On that basis, regulators intend to limit the “widespread use” of cryptocurrency as one form of payment. However, some assets deemed to “support” the financial system will be listed under the issued regulatory guidelines. This includes the CBDC where BOT is planning a pilot project.
The report is seen as a positive thing for the crypto industry where Thailand is signaling that cryptocurrencies seem to be recognizable.
