Thailand has outlawed the use of cryptocurrencies as a method of payment, claiming that the rising use of digital assets poses a danger to the country’s financial system and economy.
The new regulation will not affect trading or investment in digital assets, according to the Securities and Exchange Commission.
Tokens pose a risk to the financial system
“Restrictions on the use of digital currencies for transactions will take effect on April 1,” the regulator stated. “Companies will have until the end of April to comply with the new laws.”
Individuals, particularly young investors, are increasing their crypto trading in quest of higher gains during Thailand’s economic crisis, prompting the government to tighten down on digital assets. Due to significant volatility, unpredictability, and risk, commercial banks advise against direct engagement in digital asset trading.
Under the new laws, digital asset service providers must no longer advertise, solicit, or create a system to allow payment for goods and services using digital wallets.
Customers must be warned about utilizing digital assets for payments, and if they are discovered to be breaking the regulations, their accounts may be terminated.