Thailand is reportedly preparing to amend its law on digital assets to strengthen oversight of the crypto sector and give the Bank of Thailand the authority to supervise the sector.”
“Right now, the central bank has no room in the regulatory framework except to notify that crypto is not a legal means of payment for goods and services,” said Thailand’s Finance Minister.
Thailand Central Bank Supports Regulation of Crypto Industry
Thailand reportedly plans to amend its laws on digital assets and increase oversight of the crypto sector, especially trading platforms.
Thai Finance Minister Arkhom Termpittayapaisith explained that the planned amendments to the country’s crypto regulations will “bring the central bank to its part,” Bloomberg reported Tuesday. He added that the Securities and Exchange Commission of Thailand (SEC) has been asked to lead the regulatory review; under current rules passed in 2018, the securities watchdog has sole authority to oversee the crypto industry.
The decision to overhaul crypto regulations follows a suspension of withdrawals by the country’s licensed cryptocurrency and digital token exchange, Zipmex (Thailand) Ltd. Zipmex recently allowed withdrawals of some coins, but the company has been in Singapore applied for a moratorium.
Noting that the current regulatory framework for digital assets “is not clear enough to regulate the industry,” Termpittayapaisith was quoted as saying Monday.
For now, the central bank has no room in the regulatory framework other than to notify that crypto is not a legal means of payment for goods and services.
However, officials stressed that the purpose of strengthening crypto regulation is to provide greater protection to investors, not to throttle innovation and technology.
The Thai finance minister proceeded to compare crypto exchanges with traditional financial platforms.” With stock exchanges, you have a piece of paper to prove you are the owner. In the digital world, there is nothing but an agreement you put at the bottom that people never read,” he elaborated.
We are trying to protect investors and at the same time keep the players in the industry on fair terms.
SEC Executive Director Ruenvadee Suwanmongkol revealed plans to overhaul current crypto regulations in July. She explained that the proposal includes stricter qualifications for the management and licensing of crypto custodians.
“Extreme volatility in digital asset prices has spurred an urgent need for improved oversight,” she noted at the time.” Our main focus is to provide more protection for the few small investors who have put the bulk of their savings into these assets.”
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