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Kristina Frunze

13 February 2018

Forex

Thailand Central Bank Orders Banks To Avoid Crypto, Await Regulations

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Thailand Central Bank Orders Banks To Avoid Crypto investing and trading. The official circular also applies specifically to banks, and has nothing to do with exchanges or any other services, which are still allowed to operate in the country.

13 February, AtoZForex The governor of the central bank of Thailand, Veerathai Santiprabhob, has ordered banks all across the country to stay away from cryptocurrencies. According to some of the online reports, the central bank has issued a circular this Monday that restricts banks from investing and trading in cryptocurrency market.

Thailand Central Bank Orders Banks To Avoid Crypto, Await Regulations

It also appears that the circular from the central bank of Thailand outlines that the banks are not allowed to participate in and create exchanges and platforms for cryptocurrency trading. The official circular also applies specifically to banks, and has nothing to do with exchanges or any other services, which are still allowed to operate in the country.

Moreover, the central bank of Thailand has also ordered banks not to advise customers on cryptocurrency investment or trading. It also called for banning clients from using credit cars for cryptocurrency trading. Some of the large banks have already implemented similar measures on credit card purchases of cryptocurrency during last week.

The bank of Thailand refers to the concerns over digital currencies being used for the illicit financial activities. The authority noted that cryptocurrencies are not legal tender in the country.

Crypto Will not be Banned, But Regulated

The Finance Minister of Thailand, Apisak Tantivorawong has earlier states that the government will not ban cryptocurrencies trading. However, the officials plan on working on a regulatory framework for the digital currencies. The central bank’s circular comes as a reminder for the banks to stay away from the cryptocurrencies before the official regulatory framework can be implemented.

Back in September 2017, the Thailand’s Securities and Exchange Commission (SEC Thailand) has also signaled readiness to support ICOs by putting in place the regulations that would protect investors against fraud.

The SEC secretary-general Rapee Sucharitakul has stated that the regulator does not possess the rights to block cryptocurrency transactions as they are being traded via online platforms. However, the authority will try to educate investors in order to protect them from scams.

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