Cryptocurrency in Thailand has had a mixed journey, with successive governments banning it and unbanning it over the years. Currently though, with the help of the Australian government, the Thai government is opening up to cryptocurrency, their only demand being that there should be proper controls put in place in order to regulate the flow of cryptocurrency in the country.
While the present Thai government has held off from implementing specific legislation to regulate cryptocurrency it has still sounded caution regarding the risks of cryptocurrency to the Thai public and has called for restraint when investing in it.
of Cryptocurrency in Thailand
In 2013, the government of Thailandblocked the use of cryptocurrency in the country, citing it as a threat to the nation’s financial system. The ban was reversed in 2014 and rules were further loosened in subsequent years.
At present, the Central Bank of Thailand does not recognize cryptocurrency as legal tender. Nevertheless, purchase and sale of cryptocurrency is allowed in the country, with the condition that all cryptocurrency purchase and sales should be performed in the local currency, the Thai Baht. Proper Know Your Customer (KYC) procedures should also be put in place and suspicious transactions must be reported to the Anti Money Laundering Office of Thailand.
of ICOs in Thailand
The Securities and Exchange Commission (SEC) of Thailand recently revealed that it has been keeping track of the growing popularity of ICOs. It also stated that it realizes the potential of ICOs in funding new start-ups both in the tech and non-tech sectors.
The SEC of Thailand also stated that ICOs could fall under the purview of Thailand’s Securities and Exchange Act, akin to securities, while expressing concern about some cases where ICOs have been used to defraud people. Overall though, the Thai regulator aims to strike a balance in order to reduce scams while promoting the positive uses of ICOs.
Markets in Thailand
The government’s softening stance towards cryptocurrency has resulted in a boom in Thailand, with several local exchanges operating in the country. Many of these exchanges work under the support of Thailand’s Ministry of Finance, which, while cautious, is slowly promoting them.
Overall, the Thai government seeks a balance in the use of cryptocurrency as well as blockchain technology. It aims to bring out the positives of the technology to improve the financial system of the country while keeping a check on the negative factors associated with it.
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