Thailand SEC Bans Cryptocurrencies for Payments

While interest in blockchain and cryptocurrencies has skyrocketed in Southeast Asian countries, regulators remain suspicious of the unexpected surge. Thailand’s Securities and Exchange Commission (SEC) announced on March 23 that Cryptocurrencies will no longer be accepted as a form of payment for goods and services.

According to a report citing the local watchdog, Bitcoin exchanges and other sector groups would be compelled to stop providing digital asset payment services on April 1, 2022.

The country’s regulatory organizations had previously advised against the use of Cryptocurrency. To avoid financial instability and economic system hazards, the SEC, the Bank of Thailand, and Thailand’s Ministry of Finance announced a plan to ban Crypto for payments two months ago.

 

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Money laundering concerns and the central bank’s unwillingness to intervene and assist were listed as reasons for the ban by the regulator. They went on to say that due of their volatility and hefty transaction fees, digital assets do not boost the efficiency of the payments’ industry.

The Thai SEC, to the relief of citizens, clarified that the restriction does not apply to crypto trading or investing in digital assets. In particular, in the last two years, residents have been more interested in trading and investing in cryptos.

Thai officials declared in early March that cryptocurrency trades on government-approved exchanges will be exempt from a 7% value-added tax (VAT) until 2023.