Thailand bans crypto payments and intends to disclose flaws in the exchange system. Since December 2021, Thailand’s administration has focused on creating a new regulatory framework to define “red lines” for crypto.
The Thai Securities and Exchange Commission (SEC) released a prohibition on digital currencies for payments. This procedure seems to go against other recent measures.
Likewise, the Commission presented a new policy that would need the disclosure of information on the quality of service and the use of data Technology by crypto entities, including brokers and exchanges. According to an announcement published by the Thai SEC, entities in the region got warned not to receive crypto payments from April 2022.
A Research with the Bank of Thailand
According to the research executed by both entities, some of these risks might include the loss of value generated by price volatility, cyber-attacks, money laundering, and attacks to extract personal data.
Once the measure gets applied, entities in Thailand will get prohibited from advertising the reception of crypto payments and setting up systems, tools, and wallets to make crypto trading a more straightforward procedure.
Entities that do not follow the new crypto laws will have to deal with legal actions, including temporary obstruction or total termination of services.
Additionally, the Thai SEC proposal seeks to further ensure investor safety by measuring the quality of services brought by crypto firms. According to a rough translation made by Cointelegraph, the SEC proposes to digital asset traders to get ready and deliver reports on system capacity utilization and quality of service to the SEC office every month within the fifth day of the upcoming month.
Plus agreeing on reports each month to the Thai SEC, the bill also commands crypto-entities to communicate the definitions on their official website within the same time-lapse.
The SEC also revealed that many complaints arrived during the last year and got directly linked to system failures, services that do not meet the optimal conditions, purchases, and other aspects. According to the information published, Thai investors dealt with the most significant problems linked to crypto assets, which could be one of the most important reasons to carry out the prohibition on crypto payments.
Blockchain Recognition
However, despite all those procedures, the joint document says the BOT and the SEC, and other entities linked to the government recognize the advantages of the technologies behind digital currencies and value the use of technology to encourage new improvements in the field.
Other previous procedures carried out by the country’s authorities seem to contradict the restrictive policy released right now. This year, Thailand stepped away from plans to charge 15% capital gains tax to crypto market operators in January.
In addition, this month, Thailand was looking for alternative options, including digital currencies, for Russian tourists in their country. At the same time, it revealed a new tax policy exempting crypto users from the 7% value-added tax (VAT) on authorized trading platforms.
By: Jenson Nuñez
