The government of Thailand is working on a new regulatory framework for cryptocurrencies such as Bitcoin (BTC) and other digital currencies to reduce risks and increase investor safety.
A consultation paper on the cryptocurrency industry will be released by the Bank of Thailand (BoT) in January, said its governor, Sethaput Suthiwartnarueput, during an interview with The Bangkok Post published on December 14.
In the words of the official, “we want to make sure that we strike the proper balance between encouraging financial innovation and monitoring risks.” According to Sethaput, the new rules will provide enough safeguards for customers because “risks are underappreciated” at present.
To draw attention to specific constraints affecting the crypto industry, the central bank is collaborating with the Thai Securities and Exchange Commission and the Thai Finance Ministry. Sethaput stated that digital assets “cannot be used as a mode of payment.”
Even if local authorities may eventually recognize digital assets as an investment product, the governor stressed that their excessive volatility poses a risk to the financial system. According to him, authorities would also work together to develop appropriate safeguards for future financial securities.
Thailand crypto regulations and growth
Thailand’s efforts to pass new bitcoin regulations come at a time when cryptocurrency use in the country is on the rise. Following a year-on-year increase, the turnover at seven locally licensed crypto exchanges reached 221 billion baht ($6.6 billion) in November 2021, up from 18 billion baht ($538 million) the previous year.
Early in December, the Thai central bank issued a warning to commercial banks against “direct involvement” in crypto trading, stressing the extreme volatility and potential hazards associated with them.
The country has been in headlines since last month after the Tourism Authority of Thailand (TAT) revealed its plans on bringing a native digital token to attract digital nomads. TAT is highly positive when it comes to crypto, as the TAT governor recently said that crypto is the future.