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Thailand government bans cryptocurrency payments

On Wednesday, the Securities and Exchange Commission (SEC) of Thailand announced that it will implement a ban on cryptocurrencies as a payment method effective April 1.

Thai government bans cryptocurrency payments

Thai government bans cryptocurrency payments

The regulator said that cryptocurrencies can affect the stability of the financial system, posing risks to the country’s economy.

Other risks highlighted by the SEC include loss of value due to price volatility, cyber-theft and personal data leakage. The regulator added that cryptocurrencies such as bitcoin (BTC) can be used as a tool for money laundering.

The initiative aligns with other discussions between the SEC and the Bank of Thailand (or BOT). Previously, both entities had weighed the benefits and risks of cryptocurrencies, concluding that crypto companies should be regulated.

While restrictions on cryptocurrency payments will take effect on April 1, digital asset operators that provide such services will have until the end of April to comply with the rules, the Thai regulator claimed.

It includes the suspension of all ads requesting crypto payments and warning customers against using cryptocurrencies for this purpose.

The agency noted that both the SEC and the BOT “see the benefits of diverse technologies behind digital assets such as blockchain, and emphasize and support the use of technology to foster innovation.”

The regulator added that it is not banning the use of cryptocurrencies for investment purposes.

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