November 24, 2022
  • November 24, 2022

Central Bank Says Thai Banks Won’t Offer Cryptocurrency Trading

By on December 8, 2021 0

The Bank of Thailand has said it does not need commercial banks to be directly involved in trading crypto resources. The edict came from the central bank’s senior manager, Chayawadee Chai-Anant, on December 7, who spoke of the risks associated with exorbitant cost volatility. Thailand’s economy is under intense strain from the travel industry which was battered during the pandemic. Much of the Kingdom remains stranded with few arrivals at the time of writing, despite efforts to lure crypto and other migrants to a country where the national bank does not need them using digital currencies.

The latest round of central bank digital asset removal comes at a time when commercial banks are investing in local cryptocurrency exchanges, according to a report from the Bangkok Post.

“We don’t want banks to be directly involved in digital asset trading because banks are (responsible) for customer and public deposits and there is a risk.”

In early November, Thailand’s oldest bank, Siam Commercial Bank (SCB), announced it was acquiring a 51% stake in the country’s largest crypto exchange, Bitkub. In late August, the Zipmex crypto exchange raised $ 1.3 billion in funding from the country’s fifth lender, Bank of Ayudhya.

Last week, BoT Senior Director Sakkapop Panyanukul warned companies against accepting crypto, saying, “If other currencies are widely used, it will impact the capacity of the bank. central to overseeing the economy. Referring to non-asset backed tokens, he referred to them as “blank coins”.

The Bank of Thailand (BoT) has taken an increasingly tough stance against digital assets despite their growing popularity in the country with individuals, businesses and banks.

The central bank has also expressed concern over the use of cryptocurrencies to pay for goods and services. In a related Dec. 8 report, Chai-Anant commented that digital assets could be detrimental to merchants and consumers as they are “associated with high price volatility and the risks of cyber theft, personal data leakage, and privacy. money laundering ”.

“If digital assets become widely used as a means of payment for goods and services, such risks could affect the stability of the payment system, financial stability and consumer protection. “

The BoT’s warnings come just a fortnight after the Kingdom’s Tourism Ministry stepped up efforts to encourage crypto-rich to visit the country. The Tourism Authority of Thailand has declared the country “crypto-friendly,” but it’s clear central bankers don’t want it to be too user-friendly.

Summary of the news:

  • Central Bank Says Thai Banks Won’t Offer Cryptocurrency Trading
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