Beginning in December 2021, the Thai Securities and Exchange Commission announced the preparation of a new regulatory framework that would regulate the digital asset industry. According to reports, among the main tasks that the agency has set for itself is the definition of so-called “red lines” for the crypto industry, and as a recent statement from the regulator shows, such “lines” have been found. So, according to the decree of the regulatory body, starting from the next month - April, citizens of Thailand are prohibited from using digital assets to make all kinds of payments.
According to some local media, such a radical decision was made after a long meeting between the Securities Commission and the Central Bank of Thailand. The "main financial institution" supported the idea of the SEC, giving the go-ahead to the introduction of restrictions on members of the crypto community.
The fact that in a few days users will be deprived of the opportunity to make online payments through cryptocurrencies is not the end. Thus, the Securities and Exchange Commission of Thailand announced the tightening of regulatory measures to trading platforms, brokers, and firms whose activities are in any way connected with virtual currencies.
According to the SEC statement, it was also decided to oblige a number of the above companies to regularly provide information to the agency about the quality of the services provided, as well as the use of IT technologies in their activities.
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Based on these statements, we can conclude that the Thai regulator seriously intends to "take on" the "suppression and eradication of the cryptocurrency industry" in the country.
The Commission, despite a lot of negative comments regarding innovations, believes that the introduction of a ban on crypto payments and increased supervision of companies will have a positive impact on the financial well-being of Thailand.
“Cryptocurrency payments have the potential to have a strong impact on the stability of Thailand’s financial system. Digital assets carry risks for both ordinary citizens and businesses. Price volatility, money laundering, cyber attacks, identity theft - this is what would await users if cryptocurrencies were accepted and legalized, ”the SEC said in a statement.
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In conclusion, it is worth adding that according to the business publication Cointelegraph, the tightening of regulatory measures against the crypto industry is associated with a huge number of complaints from investors who over the past year have faced considerable losses in the purchase and sale of digital assets.