The Central Bank of Thailand is officially taking a step back from the cryptocurrency craze. Five steps back to be exact. Due to fears that stem from problems that can be brought on by unregulated trading, Monday has seen the financial institution release a circular that covers five cryptocurrency activities that will no long be permitted amongst the country’s banks.
The central bank’s governor Wisit Santiprabop signed the circular that put the action in motion. As of today advising customers on cryptocurrency trading and investing, investing or trading in cryptocurrency, creating platforms for cryptocurrency trading and allowing clients to use their credit cards for the purchase of cryptocurrency have all been banned.
The central bank then went and rubbed salt in the wounds of crypto fans by stating that cryptocurrency was not legal tender in Thailand. They further stressed that cryptocurrency can easily be used to launder money and support terrorism. That said, the Thai government went on to say that they will not ban cryptocurrencies but will find means to control and regulate them in the future.
Many banks are complying with the order. Bangkok Bang had no issues and happily complied with the central banks circular. However, some of the banks did have their share of issues. Siam Commercial Bank had recently formed a partnership with Ripple that would offer a payment service between Japan and Thailand. Now the bank will have to contact the central bank about the issue.
In terms of not allowing clients to use their debit card to purchase cryptocurrency, it seems that Thailand is following in the footsteps of the United States and the UK. Earlier this year they called for similar bans. We’ve yet to see how this will effect cryptocurrency investors and traders in Thailand, but in a few months we will be able to see if they can survive the harsh regulations.