Thai regulator wants banks to refrain from directly engaging in crypto trading

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The Bank of Thailand (BoT), the country’s central bank, has said it does not want commercial banks to be directly involved in crypto trading. Chayawadee Chai-anant, senior director of BoT, said banks are available for people to deposit and protect their money, but with cryptocurrencies, the ever-changing market movement exposes investors to financial risk. Since cryptocurrencies are unregulated and decentralized online payment methods, they are often criticized by central banks in many countries for challenging their authorities.

“If digital assets become widely used as a means of payment for goods and services, such risks could affect the stability of the payment system, financial stability and consumer protection,” Chai-anant said in a report from CoinTelegraph.

The somewhat anti-crypto advice from the BoT comes at a time when Thai commercial banks have started investing in local cryptocurrency exchanges.

Earlier in August, for example, the Zipmex crypto exchange raised $ 1.3 billion (roughly Rs 9,811 crore) from Thailand’s fifth-largest lender, Bank of Ayudhya.

In November, Thailand’s oldest bank, Siam Commercial Bank (SCB), acquired the controlling 51% stake in the Bangkok-based cryptocurrency exchange Bitkub.

This interest of Thai banks in the crypto space has become a matter of concern for the country’s central bank.

Sakkapop Panyanukul, the senior director of the BoT, warned business owners against accepting crypto payments last week. The official reportedly said that using other currencies as payment options would hamper the central bank’s ability to monitor the economy.

According to a Bangkok Post report, the BoT is considering guidelines to regulate the crypto space to reduce the risks associated with the market.

Meanwhile, crypto culture is flourishing in Thailand with around 3.6 million people believed to have cryptocurrencies.

Earlier this year, the Tourism Authority of Thailand (TAT) also proposed the launch of its own utility token called TAT Coin to attract crypto-rich travelers to visit the country and boost its economy. The coin has not yet been issued.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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