The new law will come into effect on April 1, 2022.
It is concerned about financial instability because of crypto volatility.
Q4 2021 volumes have gone up or down and how much？
The regulator highlighted several concerns, including the possibility of money laundering . In addition, it said that crypto payments do not provide an improved and efficient payments market due to volatility and high transaction fees.
Further, the announcement stressed the risk on the Thai financial systems from the usage of cryptocurrency as payments and the inability of the Thai central bank to step in and provide assistance in case of any loss of value.
“[Crypto payments] may affect the stability of the financial system and overall economic system, including risks to people and businesses,” the regulator said after a joint study of the industry by the Thai central bank and the securities market regulator.
Cryptos Are Popular
Digital asset investments and trading have become very popular in Thailand over the past few years. Though crypto payments have not become mainstream yet, many businesses have started to accept them.
The latest order came only a couple of months after the Thai authorities announced plans to regulate the crypto payments industry in the country.
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