Thailand: Central Bank encourages banks to refrain from working with cryptocurrencies

Thailand: Central Bank encourages banks to refrain from working with cryptocurrencies

Wiratchai Santiprabhob, the Governor of the Central Bank of Thailand has asked banks in Thailand to refrain from working with cryptocurrencies.

According to Reuters, the Central Bank published a special circular, which prohibits banks in Thailand to invest and trade cryptocurrencies, and create and participate in the establishment of stock exchanges and other platforms for trading cryptocurrencies. The circular is aimed primarily at banks, cryptocurrency exchanges can still work freely in the country.

Banks were also asked to give consultations to clients regarding cryptocurrency, and also to forbid customers to use credit funds to purchase cryptocurrency. Several large U.S. banks have already banned customers to use credit funds to purchase cryptocurrency.

Your ban Bank of Thailand explained the concerns about the use of cryptocurrencies for illegal activities such as money laundering or terrorist activities, and noted that cryptocurrencies are not legal tender in the country.

To regulate but not prohibit

As reported by the Bangkok Post, the Finance Minister of Thailand, Apisak Antiboson said on 7 February that the government of Thailand plans to ban cryptocurrencies, but will work to establish a regulatory framework for virtual currencies. The circular issued by the Bank of Thailand can be seen as a precautionary measure as long as this regulatory framework will not be implemented.

In September 2017, the Commission on securities and exchange Commission Thailand (SEC Thailand) has also expressed readiness to support the ICO, through the introduction of appropriate regulations to protect investors from fraudulent projects. Yesterday, February 12, the Secretary-General of RAPI Sucharitakul SEC stated that the SEC has no ability to block transactions in crypto-currencies because they are made through online platforms, but try to educate investors to protect themselves from fraudulent ICO projects.

In August 2017, the representatives of the Central Bank of Thailand met with the founder of Ethereum (ETH) Vitalik Baterina and discussed the possibility of integrating Ethereum in the Thai financial sector to improve its efficiency.

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