The latest media reports from Thailand are somewhat discouraging for Bitcoin proponents in Asia. According to recent reports, the government of Thailand has recently introduced a law that will criminalize any sort of cryptocurrency payments. As expected the law has been reinforced by the Central Bank of Thailand.
The Securities and Exchange Commission of Thailand recently put the law into full effect this week. The law aims to discourage businesses in the region to stop using cryptocurrencies as an alternative mode of payment against local fiat. The authorities have also provided a detailed account of the other aspects of the law for the benefit of the public.
With the introduction of the new crypto payments ban, a massive amount of misinformation and fear is spreading among the cryptocurrency traders of Thailand. However, the authorities have made it clear that the ban is only applicable to using cryptocurrencies such as Bitcoin as a means of payment. Furthermore, the retailers can still trade and invest in digital assets.
On the other hand, commercial financial enterprises such as banks and fintech organizations can only invest 3% of their investment capital in cryptocurrencies. The Bank of Thailand has instructed the businesses that are accepting cryptocurrencies as payment to comply with the new law within 30 days.
Cryptocurrencies and Financial Stability
According to the Central Bank of Thailand, the pressure from the lack of demand for the local fiat can cause massive devaluation and harm the financial stability of the country. The new legislature has prohibited all businesses from engaging or encouraging the issuance of products or services against cryptocurrency payments.
SEC of Thailand has also instructed the businesses to refrain from placing such advertisements that solicit the use of cryptocurrencies as a mode of payment. In case of a violation of the law, the legal authorities of Thailand reserve the right to suspend, terminate, or absorb the violating enterprise altogether. All citizens are advised to report any violations immediately to prevent the businesses from unlawful conduct.