- Thailand has banned the use of cryptocurrencies for goods and services
- The ban will come into effect on April 1
- Exchanges can still operate trading facilities
Thailand’s cryptocurrency community will not be able to use their holdings within the country after April 1, following an announcement from the Thai Securities and Exchange Commission (SEC) that a ban on the use of digital assets was to be implemented. The move follows earlier discussions between the SEC and the Bank of Thailand on the subject of regulating the sector after concerns were raised over the impact of cryptocurrencies on the country’s financial stability and overall economy.
Thailand Worried Over Impact of Crypto
The Thai authorities have been wary of cryptocurrencies for some time, but especially so in the past few years. The entity has warned citizens over its use and even sued Binance over offering unregulated services last year, while using tough new regulations to tighten the noose ever further.
Such steps were clearly not enough however, and the SEC, together with the Bank of Thailand, has gone nuclear and issued a ban on using digital assets for purchasing goods and services, which will come into effect next Friday.
Crypto Trading Still Allowed
In a statement, the SEC said that the risks to the financial system, to consumers, and of cyber theft had led to it “exercising its powers in accordance with the relevant legal framework” and tackling the issue of widespread adoption in the country, deciding in a meeting with the Bank of Thailand on March 3 to ban the use of cryptocurrencies within the country.
Companies that deal with digital assets have up to 30 days to cease all such operations and are not even allowed to advertise any related services, although they can still offer cryptocurrencies for trading purposes.
