Thailand is the center of tourism and vacation destination in Asia. The country can benefit from the prospect of making cryptocurrency payments more viable. However, the financial regulators of the region have recently decided to introduce a proper cryptocurrency regulatory framework. The new legislative changes will be directed towards the use of digital assets as payment.
The Bank of Thailand and Ministry of Finance, in association with the Securities and Exchange Commission, recently arranged a public release collectively. The joint press release posted the idea that the use of cryptocurrencies as a mode of payment will pose a threat to the financial stability of the country. The state agencies also claimed that a massive number of organizations are already using cryptocurrencies as a substitute for baht.
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The union of financial regulatory authorities of Thailand told the media recently about the threat for the public from cryptocurrency trading. The press release claimed that the investors are choosing to compromise their privacy when they trade cryptocurrencies and make payments with digital assets.
Another major issue related to cryptocurrencies is the problem of price volatility. There have been several incidents where the new investors bet heavily on the cryptocurrencies and end up losing their life savings and increasing their deficit.
The press release claimed that the investors need to proceed with care, and the regulatory agencies are working on creating a fool-proof regulatory framework to safeguard the interest of the natives.
Ruenvadee Suwanmongkol is the Secretary-General of the SEC Thailand. Speaking to the media, the official claimed that the agency has the responsibility to find a way to let the cryptocurrency organizations survive whilst protecting the citizens from financial ruin and exploitation. On the other hand, the Finance Ministry of Thailand has proposed a 15% capital gains tax.
Furthermore, the Bank of Thailand has issued a directive to prevent the direct involvement of any banking enterprise operating under its jurisdiction from offering crypto trading or custodial services. A report published by SEC Thailand showed that the annual trading volume of the region was valued at 205 baht million or $6 million last year.