Thailand’s regulators are considering new regulations aimed at cryptocurrencies as a form of payment for goods and services. Authorities claim that their broad use in the economy poses a significant threat to the kingdom’s economic well-being.
In a press release, the Bank of Thailand, the Ministry of Finance, and the Securities and Exchange Commission of Thailand stated that they want to regulate the use of digital assets as a form of payment for goods and services.
Thailand’s regulators are considering new regulations aimed at cryptocurrencies
Regulators will consider using their authority to limit the use of cryptocurrency for payments and will establish new criteria for select digital assets that promote the financial system and innovation without posing a systemic risk, according to a statement released on Tuesday.
According to the joint statement, crypto firms have expanded their operations to offer payment services using crypto and have solicited payments business by supporting the acceptance of crypto.
Separately, until February 8, the Thai Securities and Exchange Commission (SEC) is soliciting feedback on a consultation paper on digital assets. Thailand is one of a rising number of countries wrestling with how to govern cryptocurrency as the asset class grows in popularity, including China, India, South Korea, and Singapore.
The Thai Securities and Exchange Commission (SEC) is accepting public comments and ideas on the new crypto guidelines through February 8th. According to the statement, these initiatives may broaden the use of crypto as a means of payment rather than as an investment, which might have a negative impact on financial stability, consumer privacy, and cybercrime.
The document suggests that merchants be prohibited from advertising or facilitating the use of digital assets as a form of payment and that exchanges and brokerages be prohibited from offering systems that assist merchants in accepting crypto payments, such as QR codes and e-wallets.
Following the consultation, there will be restrictions on transferring assets between accounts; for example, Thai baht earned from the sale of crypto assets will be limited to the seller’s account.
Thailand is also considering imposing a 15% tax on digital asset trade, with Finance Minister Arkhom Termpittayapaisith stating that the government will finalize the details of its crypto tax proposal by the end of this month.
Meanwhile, Watanya Wongopasi, a member of Thailand’s ruling party in parliament, and other financial experts have asked the Excise Department to carefully consider the potential impact on the market — such as decreased market liquidity, which could stymie foreign investment — before implementing the crypto tax plan.
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