Thailand SEC Bans Use of Crypto as Means of Payment

  • The decision came only two months after Thailand’s central bank, SEC, and Ministry of Finance revealed their plans to regulate crypto payments.
  • The SEC also published a proposal on Wednesday, that could force crypto businesses to submit monthly reports on their service quality and system capacity utilization.
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Thailand’s Securities and Exchange Commission (SEC) will be banning the use of cryptocurrencies as means for payment for goods and services, the financial regulator said in a press release on 23 March.

According to the announcement, the new rule will come into effect on 1 April, and will give companies 30 days from its implementation to stop providing crypto payment service in Thailand. Thailand’s SEC noted that some of the reasons behind the ban was the risk of loss of value caused by price volatility, cyber theft, personal data leakage, and money laundering concerns. The press release noted that the regulator:

“Saw the need to regulate and control the use of digital assets as a medium for payment of goods and services because it may affect the stability of the financial system and the overall economy, including risks to people and businesses.”

The move came only two months after the country’s Ministry of Finance, SEC, and Bank of Thailand released a joint statement, revealing their plans to ban the use of crypto as means for payments. The Wednesday press release, however, clarified that the new rule is targeted only at crypto payment services, and will not affect trading or investing into cryptocurrencies.

Thailand’s SEC also published a proposal on Wednesday, aimed at improving investor security, that could force crypto businesses to send monthly reports on their service quality and system capacity utilization. It will also mandate that these reports are disclosed their official websites.

Earlier this month, the Thailand government also approved new relaxed tax rules for cryptocurrency investors, allowing them to offset their annual crypto losses against their gains, and receive a value added tax (VAT) exemption of 7% for crypto trades on regulated exchanges.

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