Thailand’s Securities and Exchange Commission said on Wednesday that it would ban the use of bitcoin as a means of payment beginning April 1.
Thailand forbids the usage of cryptocurrencies as a payment method.
According to a notice issued by Thailand’s Securities and Exchange Commission, enterprises in the region have been advised to discontinue accepting cryptocurrency payments in April 2022 after speaking with the Bank of Thailand about the implications (BOT). Once the regulation takes effect, businesses in Thailand will be prohibited from marketing their acceptance of cryptocurrency payments and from building systems, tools, and wallets that allow crypto transactions.
According to a study done by the Bank of Thailand, there are several risks connected with cryptocurrency payments, including value loss due to price fluctuations, cyber theft, money laundering, and the disclosure of personal information. Businesses that breach the new bitcoin regulations may face legal repercussions, including the temporary suspension or revocation of services.
The country plans to create a CDBC
Thailand is likewise developing digital money for its central bank (CBDC). Later this year, the country plans to test retail CBDC as an alternative payment mechanism for the general public. The Inthanon project has also been conducting wholesale CBDC studies since 2018. The project is now in its third phase, which entails investigating the use of the digital Thai Baht in cross-border payments.
While cryptocurrencies are not legal as a form of payment in Thailand, which may be related to the country’s aim to establish a CBDC, Thai citizens may invest in cryptocurrencies. The Thai Ministry of Finance even relaxed cryptocurrency tax restrictions in the first week of March to encourage investment in digital assets.
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