To minimize risk and increase investor protection, the government of Thailand has created a new regulatory framework to regulate cryptocurrencies such as Bitcoin (BTC).
Governor Sethaput Suthiwartnarueput, of the Bank of Thailand (BoT), stated in a December 14 interview with The Bangkok Post that a consultation paper will be released in January by the Bank of Thailand. It will outline “red lines” for crypto industry.
The official stated that they want to strike the right balance between financial innovation and managing risk. Sethaput stated that the new rules will offer adequate protections to consumers because “risks are not under-appreciated” at present.
To highlight restrictions that are specific to crypto industry, the central bank will be working with the Thai Securities and Exchange Commission and finance ministry. Sethaput pointed out that cryptocurrency cannot be used as a payment method.
The governor stressed that even though digital assets could be recognized by local authorities as investment products, extreme volatility can pose risks to the financial sector. He also said that authorities will work together to create safeguards for future financial security.
Related: Thai legislators urged to approve crypto tourism to attract digital nomads
The booming adoption of cryptocurrency in Thailand has led to Thailand’s plans for new rules regarding cryptocurrency. The report shows that the turnover of seven local crypto exchanges grew to 221 billion Baht ($6.6 billion) in November 2021, up from 18 billion Baht ($538 Million) one year earlier.
The Thai central bank issued a warning to commercial banks in early December about “direct involvement” with cryptocurrency trading. This was due to their volatility and potential dangers.
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