Central Bank of Thailand enables banks to set up crypto subsidiaries. However, these subsidiaries are prohibited from offering crypto-related services to its customers and to the public. They can only interact with other businesses that are approved the SEC or OIC.
6 August, AtoZ Markets – The Bank of Thailand (BoT) has reportedly allowed local banks to set up subsidiaries for dealing with cryptos, according to one of the local media outlets.
Bank of Thailand Enables Banks to Set Up Crypto Subsidiaries
As per the regulatory announcement that has been issued by the BoT earlier last week, banks in Thailand are now allowed to issue digital tokens. They are also enabled to provide crypto brokerage services, invest in cryptocurrencies via subsidiaries and operate crypto-related businesses.
Yet, the recent announcement has reaffirmed that all banks and other financial institutions are still prohibited from dealing with cryptocurrencies.
Banks in Thailand are now allowed to establish cryptocurrency-dealing branches. However, these branches are prohibited from offering crypto-related services to its customers and to the public. They can only interact with other businesses that are approved by Thailand’s Securities and Exchange Commission (SEC) and the Office of Insurance Commission (OIC).
Local news outlets write that the subsidiaries are also banned from offering crypto-related services to individuals. They are empowered to provide investment resources to customers unless they want to invest in digital assets that aim to develop “financial innovation.”
Bank of Thailand Crypto Rulings
At the beginning of this year, the BoT has released a circular that has banned banking institutions in Thailand from trading and investing in cryptocurrency. The central bank has also prohibited banks from taking part in setting up cryptocurrency exchange.
The BoT has also requested banks not to advise individuals on cryptocurrency investments or trading, as well as it has banned customers from using credit cards for purpose of crypto purchases.
Then, in May, the officials in Thailand have issued regulatory guidelines that define cryptos as “digital assets and digital tokens.” This move has placed cryptos under the supervision of the Thai SEC. One month later, the Governor of Bank of Thailand has spoken about using Blockchain technology for various operations within the bank’s ecosystem. During his speech, Dr. Veerathai Santiprabhob has stated that the bank is considering using the nascent technology for cross-border payments, supply chain financing, and document authentication.
Think we missed something? Let us know in the comments section below.