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Thailand to Unveil Detailed Regulation for Cryptocurrencies Next Year

WikiBit 2021-12-15 11:04

Abstract:The Bank of Thailand intends to draw “red lines” around cryptocurrencies as the interest in the asset class keeps growing.

  The Bank of Thailand (BoT) plans to suggest comprehensive legislation on the digital asset industry in January next year. The rules will aim to reduce the risks to the financial network and provide greater protection for investors.

  ‘Cryptocurrencies Cannot Be a Means of Payment’

  During a recent interview for The Bangkok Post, Sethaput Suthiwartnarueput – Governor of Thailands central bank – said the institution will release a consultation paper on “Financial Landscape” in January 2022. The document will draw the red lines for those dealing with bitcoin and the altcoins, the boss added.

  Despite the increasing interest in digital currencies, investing in them hides certain risks. That is why the proposed rules will seek to offer better protection for those involved in the asset class.

  The Bank of Thailand will work together with the nation‘s Securities and Exchange Commission and the Finance Ministry. The trio will aim to forbid digital assets from becoming a means of payment inside the country’s borders.

  Governor Suthiwartnarueput also warned that digital assets are currently highly volatile despite their potential to prosper in the monetary system.

  It‘s also worth noting that the central bank of Thailand recently urged local money institutions to stay away from cryptocurrencies citing risks coming from their enhanced volatility. It added that the broad employment of bitcoin and the alternative coins could also impact BoT’s ability to monitor the national economy.

  Australia Enforces a Cryptocurrency Reform Plan too

  Australia is another country that recently revealed its intentions to regulate the crypto industry. The Federal Treasurer – Josh Frydenberg – informed that local authorities will discuss potential reforms in the next 12 months. The idea is to create a better ecosystem for crypto traders, implement a regulatory framework on exchanges, and launch a central bank digital currency.

  According to statistics, the reform proposal will be the biggest in 25 years. Its primary purpose will be to enable Aussies to buy and sell bitcoin and alternative coins in a regulated environment.

  “For consumers, these changes will establish a regulatory framework to underpin their growing use of crypto assets and clarify the treatment of new payment methods,” the politician said.

  The legislation will also touch upon Australian trading venues. Frydenberg added that they should have the same regulations as banks since they hold “significant sums of peoples money and investments, and there needs to be accountability.”

  The Federal Treasurer concluded that completing the reforms could turn Australia into a cryptocurrency hub and place the state “among a handful of lead countries globally.”

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