Breaking: Thailand Bans Cryptocurrency Payments

Thailand’s SEC issued an order to ban digital assets as a payment option for services and goods. The ban will start operating from 1 April.

The move reflects the government’s stance against cryptocurrency transactions. Remember, the Bank of Thailand repeatedly emphasized not supporting crypto as a legal tender. Moreover, the ban follows the latest remarks by the Securities Exchange Commission, planning to regulate crypto usage in paying for goods and services.

Ban to Protect Thailand’s Financial Stability

The SEC revealed that cryptocurrency payments might dent the nation’s economic stability. Experts believe the latest massive volatility witnessed in the crypto space contributed to Thai’s stance. Increased volatility makes crypto payments somehow unfeasible as a tender.

Reuter reported that Businesses offering cryptocurrency payment services have 30 days to adhere to the new rules. The move aligns with how most nations approach cryptocurrency, approving it as an investment option and not legal tender.

Also, Indonesia warned companies against initiating crypto payments. Meanwhile, El Salvador remains the only nation recognizing crypto as an official currency.

Thailand Still Boast Crypto-Friendly Rules

Thailand still boasts laws that promote crypto usage despite banning the asset class as legal tender. Recently, the lawmaker scrapped the planned 15% crypto investments tax instead of exempting VAT from transactions on specific cryptocurrency exchanges.

Moreover, Thailand allows investors to offset yearly losses against returns for taxes due on crypto investments. That comes after Southeast Asia’s 2-largest economy saw increased cryptocurrency adoption.

Crypto analytic firm Chainalysis ranked Thai 3rd in the index of nations leading in DeFi adoption last year, 2021. Also, Thai ranked 12th in Chainalysis’ 202 global cryptocurrency adoption index.

Companies have to April end to adhere to the regulations. Nevertheless, restrictions on crypto payments will start operating on 1 April. The lawmakers revealed that curbing crypto for commercial transactions follows financial rules in Malaysia, Europe, South Korea, and the UK.

Thailand’s crypto clampdown comes as young individuals jump into crypto to access lucrative profits as the nation experiences an economic slowdown. The Thai regulators warned commercial banks about cryptocurrency involvement because of high risk, uncertainty, and volatility.

Stay tuned for more updates.