Bank of Thailand issues warning to crypto holders

The Bank of Thailand (BOT) has fired the first shots, warning crypto holders who will continue to use their digital assets with strong regulatory measures.

In a statement released Thursday, the central bank of the Asian nation said those who engage in the trade of digital assets for goods and services, as the sender or recipient, might face risks including money laundering, theft as well as price volatility.

Moreover, the financial institution once again pointed out its position on cryptocurrencies such as bitcoin and ethereum, saying these are not legal tender in the country and are subject to consequences from regulators.

Using digital assets

“Should the use of digital assets as a means of payment for goods and services become widespread, the BOT will coordinate with the Securities and Exchange Commission and other related agencies to take necessary measures,” the Bank of Thailand said.

The financial institution said it will be inclined to do so to ensure that they do not pose extensive risks to the general public or the economic and financial system.

As far as digital assets are concerned, the BOT said it is still in the process of developing a Central Bank Digital Currency (CBDC) as well as establishing guidelines for fiat-backed stablecoins in the country. The preliminary testing protocols were set to start in the second quarter of next year.

Guidelines for crypto traders, businesses

Thailand has issued a number of guidelines that were set for individual crypto traders and businesses.

In fact, the country’s Securities and Exchange Commission proposed a set minimum annual income requirement for crypto investment in Thailand which stands at 1 million baht or roughly $32,000.

However, the plan was shelved because of the public backlash it created.

 

Image courtesy of Cointelegraph News/YouTube

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