What Happens to Digital Assets as Payments in Thailand?

For the past year, cryptocurrency regulations have been a source of contention. While the crypto community would like to keep them as flexible as possible, regulators are attempting to get control of the emerging technology.

Governments around the world are taking different approaches. Some have introduced regulations, while others have not, and some have even outright prohibited the use of cryptocurrencies. Meanwhile, Thailand has announced plans to prohibit digital asset operators from facilitating the use of cryptocurrency as a form of payment for products and services. To be clear, this does not preclude anyone from investing in cryptocurrency, but it does preclude them from using it as legal cash.

Investments Are Still Allowed

In recent years, cryptocurrency trading and investing have grown in popularity in Thailand. Several brokers in the country provide crypto trading services, and they can continue to do so. “Investors, consumers, and citizens can still trade digital assets for investment as usual,” stated a Stock Exchange Commission representative.

Limiting Risks

According to the Thai central bank and market regulator, this measure is an attempt to limit risks. The goal is to minimize the widespread usage of crypto assets as a means of payment due to their extreme price volatility. The central bank believes this could potentially impact financial stability and the overall economic system.

The Thai central bank has already expressed several times that it does not support the use of crypto as a means of payment. Other regulators in the region take a similar stance, with Indonesia's regulator warning financial firms not to get involved with crypto.

Details Remain Unclear

It is not yet clear how the new rules will affect the use of digital assets as a medium of exchange between merchants and customers. Also, the regulators stated they would consider allowing digital assets that are beneficial to the country to operate. What exactly those assets are has not been subject to further discussions yet.

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