What happened? Thailand will ban the use of cryptocurrencies as a means of payment for goods and services. The authorities said that digital assets threaten the country's financial system and economy.
The Securities and Exchange Commission has said that commercial operators, including cryptocurrency exchanges, should stop providing such payment services and promote the use of digital assets to pay for goods and services. However, the new regulation will not affect trading or investment in digital assets.
Deadlines. Although restrictions on digital currencies usage will take effect on April 1, companies will be given time until the end of April to start complying with the new rules.
What else? According to the new rules, digital asset service providers must stop advertising, requests, or creating a system to facilitate payment for goods and services through digital wallets. Business operators must warn customers about the use of digital assets for payments and can cancel their accounts if they violate the rules, the regulator said.
Context. In January 2022, the Thai government reported that the value of digital assets owned by Thais has increased from $285.6 million to $3.4 billion in just the last couple of years.
What does it mean? It means cryptocurrency payments for real estate transactions in Thailand will also be prohibited.
Source: BNN Bloomberg