Thailand SEC announces ban on crypto payments

Thailand enacts new rule prohibiting the use of cryptocurrency payments amid global crypto crack downs.
Thailand SEC announces ban on crypto payments | Coinscreed

The Thailand Securities and Exchange Commission (SEC) has imposed a restriction on the use of cryptocurrencies for payments as part of its continuous drive to create a regulated crypto market for the general public. Similarly, the Commission suggested a new regulation requiring crypto firms, such as brokers, exchanges, and dealers, to provide service quality and IT usage statistics.

Thailand SEC’s bone of contention

A notice from the Thailand Securities and Exchange Commission says that businesses in the region should not accept crypto payments starting in April 2022. The Thai Bank of Thailand and the Thai SEC have talked about how crypto payments could affect businesses in the region and have agreed that businesses should not accept crypto payments from then on (BOT).

The BOT and the SEC did a joint study and found that:

“[Crypto payments] may affect the stability of the financial system and overall economic system including risks to people and businesses.”

In addition to price volatility-related value loss, cyber theft, money laundering, and personal data leakage are some of the hazards identified by the SEC. Businesses in Thailand will be prohibited from Openly advertising that they accept cryptocurrency payments and building systems, tools, and wallets to assist cryptocurrency transactions once the law is enforced.

The prohibitions also stated  that businesses who are found to be in violation of the new crypto rules may be subject to legal action, which may include the temporary suspension or revocation of the services they provide:

“However, the BOT and the SEC, as well as other government agencies, recognize the benefits of technologies behind digital assets such as blockchain and value and support the use of technology to further innovation.”

In addition to submitting monthly reports to the Thai Securities and Exchange Commission, the plan also requires crypto firms to publish the reports on their official website within the same timeframe.

The SEC also released a graph that detailed numerous complaints received over the previous 12 months, including system failure, services that did not match the necessary requirements, shopping, and others. According to the statistics, Thai investors had the most difficulties with purchasing, which might be one of the primary reasons for the crypto payment prohibition.

Thailand hinted its citizens about the regulations in 2021

Thailand’s government confirmed in December 2021 that it is working on a new regulatory framework for the crypto industry by defining “red lines.”

Thailand’s finance ministry allegedly loosened crypto tax laws in the first week of March in an effort to attract digital asset investments.

Crypto traders dealing on recognized exchanges are immune from the 7% value-added tax (VAT) under the new tax policy. Traders will also be able to offset their annual losses against profits from their crypto investments across numerous digital assets under the new tax regime.