To guarantee that crypto payments do not pose “extensive risks to the general public or the economic and financial system.” the BOT stated that it may be required to work with the Securities and Exchange Commission.
It has issued a warning to cryptocurrency holders who use their digital assets as a medium of exchange, warning that if these actions grow widespread, the Bank of Thailand will take harsh regulatory action.
The central bank stated in a statement on Thursday that anyone who engages in the transfer of digital assets for goods and services, whether as a sender or as a recipient, may be exposed to risks such as money laundering, theft, and price volatility.
Bitcoin (BTC) and Ether (ETH) are not legal tender in Thailand, according to the Bank of Thailand, which has restated its position. The BOT also warned of the implications if authorities fail to act.
When the use of digital assets as a means of payment for goods and services becomes widespread, the Bureau of Transportation will work with the Securities and Exchange Commission (SEC) and other relevant agencies to implement the necessary safeguards to ensure that they do not pose significant risks to the general public or the economy and financial system.
Furthermore, according to the BOT, the government is still in the process of building a central bank digital currency, also known as a CBDC, as well as defining criteria for fiat-backed stablecoins.
According to a proposed roadmap for the CBDC, which was released in April, preliminary testing methods were scheduled to begin in the second quarter of 2022 and be completed by the end of the year.
With the exception of CBDCs and some stablecoins, Thai regulators have released a number of guidelines for both individual crypto traders and enterprises in the cryptocurrency space.
Earlier this year, Thailand’s Securities and Exchange Commission recommended a 1 million baht (approximately $32,000) minimum annual income threshold for cryptocurrency investment, a proposal that was ultimately scrapped following widespread public opposition.
Last month, the Securities and Exchange Commission (SEC) issued a notice prohibiting Thai exchanges from dealing with meme-based tokens, fan-based tokens, nonfungible tokens, and exchange-issued tokens.
Meanwhile, the amount of cryptocurrency trading on the country’s exchanges appears to have continued to grow.
According to data issued by the Thai Securities and Exchange Commission (SEC) in April, overall trading volume on exchanges surged by approximately 600 percent between November and February, putting it at more than $4 billion at the time of publishing if the rising trend maintained.