Thailand is reportedly preparing to amend its digital asset law to tighten oversight of the crypto sector and enable the Bank of Thailand to monitor the sector. “Currently, the central bank has no room to step into the regulatory framework other than to notify that cryptocurrencies are not a legal means of payment for goods and services,” said the Thai finance minister.
Thailand’s central bank will help regulate the crypto industry
Thailand is reportedly planning to amend its digital asset law to tighten oversight of the crypto sector, especially trading platforms.
Thai Finance Minister Arkhom Termpittayapaisith explained that planned changes to the country’s crypto regulations will “make the central bank part of them,” Bloomberg reported on Tuesday. He added that Thailand’s Securities and Exchange Commission (SEC) had been asked to lead the regulatory reform. Under the current rules adopted in 2018, the securities regulator has the sole mandate to oversee the crypto industry.
The decision to review crypto regulations followed the suspension of withdrawals by Zipmex (Thailand) Ltd., a licensed cryptocurrency and digital token exchange in the country. Zipmex recently allowed some coins to be withdrawn, but the company filed for a moratorium in Singapore.
Noting that the current regulatory framework for digital assets “is not clear enough to regulate the industry”, Termpittayapaisith was quoted as saying on Monday:
Currently, there is no room for the central bank to step into the regulatory framework other than to notify that cryptocurrencies are not a legal means of payment for goods and services.
However, the official emphasized that the goal of stricter crypto regulations is to provide investors with greater protection, not to stifle innovation or technology.
The Thai finance minister went on to compare crypto exchanges to traditional financial platforms. “For the stock exchange, you have documents to prove that you are the owners. In the digital world, you have nothing but the consent you put at the bottom, which people never read,” he explained, elaborating:
We try to protect the investors as well as keep the industry players on fair terms.
SEC Secretary General Ruenvadee Suwanmongkol revealed plans to overhaul current crypto regulations in July. She explained that the proposals include stricter qualifications for managing and licensing crypto custodians.
“The extreme volatility of digital asset prices drives the urgent need for enhanced oversight,” she noted at the time. “Our main focus will be to provide more protection for small investors, some of whom put most of their savings into these assets.”
What do you think about Thailand authorizing the central bank to oversee the crypto sector? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Rebuttal: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, nor is it a recommendation or endorsement of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.