11 July 2024

The Finance Ministry, Bank of Thailand and Securities and Exchange Commission (SEC) have agreed to a plan to regulate and limit the use of cryptocurrencies as a means of paying for goods and services, to prevent such transactions from affecting Thailand’s financial stability and economic system, pending public hearings on the matter.

The planned regulation and limitation is just one of the measures being considered by the three state agencies aimed at curbing the booming digital asset business in Thailand, which is quickly expanding in line with global trend of paperless and seamless financial transactions.

According to the three state agencies, digital asset operators have expanded the scope of business by advertising and offering payment services through the use of cryptocurrencies, which may lead to wider use of such digital assets as legal tender for payment of goods and services.

The need to curb their operations is to prevent risks from loss to the investors caused by the high volatility of the value of cryptocurrencies and the need to increase the potential of the financial system.

The three agencies admitted, however, that some digital assets, which are useful financial innovations and do not pose a risk to financial or economic systems, will receive their support, but regulations must be put in place to curb cryptocurrency operations.

SEC secretary-general Ruenvadee Suwanmongkol said, however, that public hearings will be held to take opinions from stakeholders about the services provided by digital asset operations and the proposed curbs by the three state agencies.