Thailand’s prime minister has announced that the country will define “red lines” for cryptocurrencies in early 2022. The announcement comes shortly after a major crackdown on initial coin offerings and cryptocurrency trading, with police raiding offices of several exchanges. Though it remains to be seen how strictly these red lines will be enforced, they are likely similar to China’s regulations where all crypto-based businesses must register as companies before exchanging money
The “future of cryptocurrency 2021” is a topic that has been discussed for quite some time. The Thai government will be defining “red lines” for crypto in early 2022.
Thailand’s government is working on a new legal framework for cryptocurrencies such as Bitcoin (BTC) to reduce risks and increase investor safety.
In a Dec. 14 interview with The Bangkok Post, governor Sethaput Suthiwartnarueput stated the Bank of Thailand (BoT) would produce a consultation document in January that will set “red lines” for the crypto business.
“We want to find the correct balance between encouraging financial innovation and risk management,” the person said. The new guidelines will offer enough consumer protections since “risks are now under-appreciated,” according to Sethaput.
The central bank is working with the Thai Securities and Exchange Commission and the finance ministry to highlight crypto-industry-specific regulations. “Cryptocurrencies cannot become a form of payment,” for example, according to Sethaput.
Despite the fact that municipal governments may recognize digital assets as an investment product, the governor said that their excessive volatility posed a danger to the financial system. He also said that authorities would work together to implement appropriate protections for future financial securities.
Thai politicians are being encouraged to authorize tourist cryptocurrency in order to attract digital nomads.
Thailand’s ambitions to pass new bitcoin regulations coincide with a surge in local cryptocurrency use. According to the research, in November 2021, the turnover at seven domestically approved crypto exchanges increased to 221 billion baht ($6.6 billion), up from 18 billion baht ($538 million) a year earlier.
The Thai central bank advised commercial banks against “direct engagement” in cryptocurrency trading in early December, citing significant volatility and possible hazards.
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