Bank of Thailand Bans Banks From Cryptocurrency Activities
The Thai central bank has prohibited financial institutions in the country from five key cryptocurrency activities, including banning customers from buying cryptocurrencies with credit cards.
Banks Banned From 5 Crypto Activities
Mr. Wisit Santiprabop, the central bank’s governor, signed the circular which outlines five key cryptocurrency activities banks are banned from:
Investing or trading in cryptocurrency, exchanging cryptocurrencies, creating platforms for cryptocurrency trading, allowing clients to use credit cards to buy cryptocurrencies, and from advising customers on cryptocurrency investing or trading.
The central bank stated that 'cryptocurrencies were not legal tender in Thailand,' the publication conveyed, adding that 'it was worried that they may be used in illegal activities such as money laundering or supporting terrorism.'
Recently, the Thai government announced that it will not ban cryptocurrencies and is developing a regulatory framework for them.
He explained that there are some areas that banks need to examine before being able to comply. For example, to prevent customers from buying cryptocurrencies using credit cards, he elaborated:
In Thailand, people are buying digital currency. So the bank is asking for time to check the type of transactions that customers [make when they] swipe cards that are associated with digital currency. If applicable, the bank may have to suspend the service.
Recently, banks in the US and well as the UK have also banned their credit card customers from buying cryptocurrencies.
As for cryptocurrency traders, Poramin Insom, managing director of the Thai crypto exchange TDAX, said that "there is no impact on people who are investors of cryptocurrencies,” the news outlet quoted him. However, he explained, "TDAX is affected by this announcement, which makes the process of opening an account with the bank take longer. Bank of Thailand requests more documents.'
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