Thailand: The Reasons Why the Central Bank Requires Banks to Avoid Crypto
Thailand is another skeptical country in terms of using the crypto coins. A state’s official suggested to all the national financial institutions not to get tangled with crypto system.
On 13 February 2018, a new worried country about crypto usage has made itself remarkable. The Governor of the Central Bank of Thailand expressed his opinion in front of all the national banks, suggesting them not to accept the crypto coins.
According to Reuters, the Central Bank has implemented on February 12, 2018 a circular law that prohibits all the banks from interacting with digital coins as well as from being connected to any crypto exchanges or trading platforms.
We want to mention that the regulation concerns only the national financial institutions, not crypto trading platforms.
The Governor, Veerathat Santiprabhob has expressed his worries by advising bankers not to support the investments made in crypto currencies, and to prohibit clients from using credit cards in order to purchase any digital assets.
What are the reasons?
Asked why the Central Bank is taking measures against the digital system, the Governor said that their use is illegal in the country. Also, these pose a major risk because of dirty activities managed by terrorists and hackers. The country wants to avoid especially the money laundering.
Regulate or Ban?
However, on 7 February 2018, the Finance Minister, Apisak Tantivorawong has announced that the Thailand’s government doesn’t intent to ban the crypto trading. Instead of this, it will try to regulate the circulating amount on the territory.
The Securities and Exchange Commission’s Secretary General of Thailand replied on 12 February 2018 that the institution isn’t able to ban the crypto transactions because these are managed via online platforms. However, their goal is to educate the future investors to protect themselves against any fraud.
Do you think that Thailand’s government will eventually ban the crypto trading?