Thailand's Market Watchdogs Suggest Crypto Regulation to Avoid Threatening Financial Stability
Godfrey Benjamin Jan 27, 2022 05:05
Regulators in Thailand, including The trio of the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF), issued a joint statement on cryptocurrencies that threaten the local financial ecosystem.
With the year newly shaping up, more regulators are beginning to explore avenues to regulate the digital currency ecosystem. Accordingly, Thailand’s top regulators have issued a statement to regulate cryptocurrencies as a means of payment.
Stumping Competition with National Fiat
The trio of the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) issued a joint statement noting that certain digital assets are fast growing as a means of payment in the country.
Based on this designation, the regulators said they have chosen to regulate the assets such that they will not pose threats to the financial and economic stability being enjoyed by the nation.
Sethaput Suthiwartnarueput, Governor of the BOT said:
“The BOT takes into consideration both the risks and benefits of digital assets, including the underpinning technologies. At present, the widespread adoption of digital assets as a means of payment for goods and services poses risk to the country's economic and financial system. Therefore, clear supervision of such activity is needed."
The authorities said while there will be an issued framework guiding assets deemed risky, there will also be a broad provision for those that pose no threat to the country’s financial ecosystem. The plans to issue the regulations will come after adequate consultation has been made with relevant stakeholders and members of the public, all of which will be factored in by the regulators.
"However, technologies and digital assets that do not pose such risks should be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public,” Suthiwartnarueput added.
Patting Blockchain Innovations on the Back
Thailand is one of the nations whose positivity toward digital currencies is well documented. Despite the plans to crack down on cryptocurrencies, the country remains amongst the pioneers of blockchain-backed electronic letters of guarantee and virtual Visas amongst others. With the flexibility of the regulators, whatever path that will be trailed by the company will not be as damning as those chosen by China and other nations that banned cryptocurrencies outrightly from their shores.
Image source: Shutterstock