The Securities and Exchange Commission of Thailand announced a ban preventing businesses from receiving crypto as payment
With effect from April 1st, the use of digital assets as a method of payment for goods and services will be prohibited in Thailand. In order to maintain its rather contentious relationship with the crypto sector, Thailand has instituted a prohibition on the use of digital assets as a form of payment. The country issued a warning, stating that they might endanger its financial system and economy.
In a statement, the Securities and Exchange Commission (SEC) said the move was in line with earlier discussions between the SEC and Thailand’s central bank, the Bank of Thailand (BOT), about the need to regulate such activity by digital asset business operators because it could have an impact on the country’s financial stability and overall economy. According to the statement, digital asset company operators that provide such services must comply with the new laws within 30 days of the rules being effective.
The following is a summary of the announcement in its original language: “All types of digital asset business operators must not provide services or act in a manner that encourages or promotes the payments of goods and services with digital assets.”
Specifically, the SEC states that advertising, solicitation, and any type of presentation that indicates a product or service’s ability to accept a medium of payment, as well as wallets designed specifically for use with a medium of exchange, are all prohibited activities. Thailand’s digital assets are a huge appeal, and the usage of digital assets as payment methods is becoming more common. Earlier this year, The Mall Group, a big retailing corporation, began placing digital asset payment devices in its shopping malls, beginning in December of that year.
A real estate firm affiliated with the Charoen Pokphand Group, sometimes known as the CP group, sells properties that may be purchased using digital assets. Thais own digital assets in greater numbers than in any other country in the world, according to a survey conducted by the German market intelligence company Statista. Following Nigeria, it is the second most significant share among 56 countries.
The Tourism Authority of Thailand (TAT) has also expressed optimism that cryptocurrencies may assist in attracting affluent tourists to the country in order to strengthen the country’s post-pandemic economy. “Crypto is the future, so we must make Thailand a crypto-positive society to welcome this group of quality tourists,” TAT Governor Yuthasak Supasorn said last November.
