Thailand’s Securities and Exchange Commission has issued a prohibition on firms accepting cryptocurrency as payment.
The Securities and Exchange Commission imposed a restriction prohibiting business operators from accepting cryptocurrency as a “Means of Payment” for their products or services, in agreement with Thailand’s central bank.
The restriction would not prevent anyone from investing or trading in cryptocurrencies, and operators are required to take action if their products or services are “misused” for payment services.
In a proposal from the Bank of Thailand, a 3% investment cap would be imposed on commercial banks and fintech companies wanting to engage in digital assets.
According to a press release from the Thai Securities and Exchange Commission (SEC), the SEC has issued rules prohibiting digital asset operators from offering services in the sector that would allow the use of digital assets as a means of payment for goods and services.
Businesses who accept cryptocurrency payments are barred from doing so and must comply with the directive within 30 days of April 1st in order to “protect financial stability and the national economy.”
“All sorts of digital asset company operators must not provide services or act in a manner that stimulates or promotes the payment of goods and services using digital assets,” the translated notification says.
Advertising, soliciting, and any other sort of presentation that suggests a medium of payment capacity from any products or services, as well as wallets manufactured with a special designation for a medium of exchange, are all prohibited activities, according to the SEC.
This protocol does not prohibit the use of bitcoin or other cryptocurrencies as a means of investment or trading; rather, it prohibits the use of these assets as a means of payment. The SEC stated that both the Bank of Thailand (BOT) and the SEC “see the benefits of various technologies behind digital assets such as blockchain and emphasise and support the use of technology to further innovation and does not prohibit the use of digital assets for investment,” according to the statement.
If a business owner discovers that customers are paying for their goods or services with cryptocurrencies, the owner is compelled to report the misuse of the product or service to the SEC. Should a client be found guilty of such activity, the SEC compels the business operator to take action against that client. “As part of this, the service may be momentarily suspended.” Terminate the service or take any other action that is appropriate.”
In a suggestion published by Bloomberg that was submitted after the first prohibition was announced, commercial banks may be subject to a 3% investment cap, allowing them to commit only 3% of their investable capital to digital assets. The investment cap is intended to boost public trust in the commercial banking sector.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.