Despite the increasing adoption of crypto worldwide, many countries lack clarity in their crypto regulations. Few jurisdictions have modern and clear crypto regulatory systems. Thailand plans to introduce comprehensive and clear legislation on digital assets in the next year.

The Bank of Thailand will implement new rules concerning cryptocurrencies in January 2022. This will lower the risk that crypto-assets pose for the financial system, and protect investors.

Bank of Thailand will issue comprehensive paper about crypto regulations

The Governor of Thailand's central banking, Sethaput Suthiwartnarueput spoke to The Bangkok Post about a consultation paper called "Financial Landscape", which will be published in January 2022.

This paper will explain how people interact with Bitcoins and other cryptocurrencies. These rules will help protect crypto asset investors from the high risks associated with crypto investments.

The Bank of Thailand, Thailand Securities and Exchange Commission and Finance Ministry will be involved in the initiative. These three agencies will collaborate to make sure that cryptocurrencies are not used in Thailand as a method of payment.

Investors should be aware that cryptocurrencies can be volatile, according to the governor. Because of their volatile nature, the Bank of Thailand had advised local banks not to use cryptocurrencies. The Bank of Thailand noted that the increased use Bitcoin and other altcoins could impact its ability to monitor the economy.

The Thai government is urged to embrace cryptocurrency

Despite the Bank of Thailand's negative attitude towards cryptocurrency, Thailand continues to have high levels of crypto trading activity. Jirayut Srupsrisopa (CEO of Bitkub) recently urged legislators to embrace cryptocurrency to increase Thailand's GDP.

The CEO stated that the private sector was ready and able to provide the infrastructure necessary to encourage the use of cryptocurrency in local tourism. He said that Thailand's GDP could increase six-fold if it embraces cryptocurrencies.

Thailand's tourism sector accounts for nearly 20% of its GDP. In September, the Tourism Authority of Thailand (TAT), announced plans to launch a utility coin called TAT Coin. The currency is intended to attract wealthy crypto tourists. Thailand's SEC has been in discussion with the authority regarding its issuance.

Thailand plans to also launch the testing phase of its digital currency (CBDC), for retail central banks, in 2022. The CBDC aims to increase financial inclusion in Thailand, without compromising the country's financial stability. The CBDC will lower cross-border transaction fees and increase efficiency in the financial sector.

-------------------------------------

By: Ali Raza
Title: Bank of Thailand to draw “red lines” on cryptocurrencies amidst crypto boom
Sourced From: insidebitcoins.com/news/bank-of-thailand-to-draw-red-lines-on-cryptocurrencies-amidst-crypto-boom
Published Date: Wed, 15 Dec 2021 13:44:12 +0000