Thailand Bans Use Of Crypto As Mode Of Payment

Thailand's Securities and Exchange Commission (SEC) has banned the use of cryptocurrencies as a means of payment for goods and services from April 1.

In a statement released Wednesday, Thailand's SEC said that using cryptos as a payment mode could be a risk to financial stability and also pose economic system risks.

The decision comes a few months after the SEC, the central bank and the country's finance ministry jointly said that they plan to ban crypto for payments. The SEC has given 30 days' notice to crypto operators that provide payment services to stop doing so.

However, it said that the new rules won’t affect trading or investment in cryptos in the country. In fact, earlier this month, the government relaxed tax rules for investors.

The country also plans to test its retail CBDCs (central bank digital currencies) later this year. It has also been exploring the launch of wholesale CBDCs since 2018.

Meanwhile, countries globally are embracing crypto as payment option. Malaysia’s communications ministry proposed to the government to recognise cryptocurrencies such as Bitcoin as legal tender in the hope of developing and assisting in youth participation in digital assets. The Swiss city of Lugano also recently made Bitcoin and Tether legal tender.