Bank of Thailand tells commercial banks not to be involved in crypto trading

The Bank of Thailand does not want a direct involvement of commercial banks in crypto assets trading.

On December 7, the senior director of the Bank of Thailand, Chayawadee Chai-Anant, cited the underlying risks associated with the high price volatility of crypto assets. He added that the monetary policy handler does not want commercial banks to be directly involved in risky cryptocurrency trading as banks are responsible for customer deposits and serve the public.

According to a Bangkok Post article, the new round of central bank regulation of digital assets comes amid commercial banks’ increased investment in local crypto exchange platforms.

As TheCoinRise reported, Thailand’s oldest bank Siam Commercial Bank (SCB), revealed that it was acquiring 51% share in Bitkub, the country’s top crypto exchange, in early November.

Before this, in August, the Zipmex crypto exchange, which got a license from the Thailand SEC last year, received $1.3 billion in funding from the country’s fifth-largest lender Bank of Ayudhya. 

Despite its growing acceptance among people, companies, and institutions in Thailand, the Bank of Thailand (BoT) has been taking a harsher approach against digital assets.

Bank of Thailand’s Senior Director Sakkapop Panyanukul warned firms last week that if other currencies are broadly adopted, it will affect the central bank’s ability to monitor the nation’s economy. He referred to tokens that were not backed by assets as “blank coins.”

Bank of Thailand concerned about crypto usage

The usage of digital assets to pay for goods and services has also raised concerns for the central bank. Chai-Anant had this to say:

“If digital assets become widely used as a means of payment for goods and services, such risks could affect the stability of the payment system and finance, along with consumer protection.”

Thailand was recently in the headlines for its positive stance toward crypto as the Tourism Authority of Thailand or TAT plans to bring its native token to attract crypto nomads in the country.

The development aimed to support local small businesses that are in great loss. Thailand’s economy is largely dependent on the tourism sector, which the COVID outbreak has severely harmed.