Digital assets as payment requires more regulation in Thailand

PHOTO: Digital assets as payments require more regulation in Thailand. (via Medium)

After studying the risks and benefits of using digital assets and cryptocurrencies to pay for goods and services, a coalition of financial bodies have decided that more regulation is necessary in Thailand. The Ministry of Finance, along with the Bank of Thailand and the Securities and Exchange Commission, have partnered together to assess the regulation needed for crypto usage in Thailand.

Cryptocurrencies have been skyrocketing in popularity throughout the world and in Thailand in particular. Bitkub, Thailand’s largest digital asset exchange, recently struck a deal for Siam Commercial Bank to purchase a 51% stake in the company. But as the recent tumble in Bitcoin and other cryptocurrencies shows, digital assets come with plenty of risk that could threaten the financial stability and economic systems of Thailand.

The Ministry, BOT, and SEC agreed that as more and more businesses and services accept crypto and other digital assets as payment, like Siam Real Estate recently did, wider adoption could impact Thailand’s financial stability if cryptocurrency becomes a common form of payment and not just an investment option like the stock market.

The financial entities also observed that crypto and digital asset companies have been seeking out businesses to convert to the crypto market by offering to help set them up for crypto payments and setting up digital assets settlement systems.

Authorities fear that aside from the volatility often seen in the crypto markets, the continued spread of the mainstreaming of digital assets can also open the door to a rise in money laundering, cyber theft, and personal data exposure.

It was decided that more strict regulation will be necessary for some of the digital asset and cryptocurrency payments though the financial institutions vow that the regulation will leave room for advancement and innovation in the digital space while still providing some stability to minimize risk. They also vow to consider the opinion of the general public and others with a vested interest in crypto before making their decisions.

SOURCE: Thailand Business News

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Neill Fronde

Neill is a journalist from the United States with 10+ years broadcasting experience and national news and magazine publications. He graduated with a degree in journalism and communications from the University of California and has been living in Thailand since 2014.