Thailand bans cryptocurrency use for payments

Thailand’s Security and Exchange Commission (SEC) has revealed it will introduce a ban on crypto as a method of payment from April 1 this year.

According to Decrypt, the regulator said that cryptocurrencies may affect the financial system’s stability, which could post risk to Thailand’s economy.

The SEC also highlighted other risks including the loss of value due to price volatility, person data leakage and cyber theft. Cryptocurrencies may also be used as a tool of money laundering, the regulator added.

While the cryptocurrency restrictions will be imposed at the start of April, digital asset business operators that offer such services will have until the end of the month to comply with the new rules. This involves stopping all advertisements soliciting crypto payments and warning clients against the use of crypto for the same.

The SEC stated that both it and the Bank of Thailand ‘see the benefits of various technologies behind digital assets such as blockchain and emphasise and support the use of technology to further innovation’.

The regulator noted however, that it is not banning the use of crypto for investment purposes.

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