BoT warns of risks linked to Bitcoin payments.

The Bank of Thailand (BoT) reminded that cryptocurrencies are not legal tender in the country, and warned that regulatory measures would be introduced if they become widespread.

According to the press release, payments in digital assets amount to ‘barter trading,’ with the parties to the transaction assuming all risks. The BoT cites volatility, cybercrime and money laundering among the risks.

The regulator also noted that some digital assets are investment instruments whose holders should be aware of the risks associated with ownership. The central bank emphasised that it does not support using cryptocurrencies to pay for goods and services, and this view aligns with the positions of international organisations and regulators.

According to BoT, some local merchants and businesses offer this option. If the practice becomes widespread, the central bank will coordinate its actions with the Securities and Exchange Commission (Thailand) and other relevant authorities to safeguard the public.

BoT acknowledged the importance of financial innovations and noted that the regulator is developing CBDC and formulating guidelines for stablecoins, including fiat-backed ones.

In the second quarter of 2021, Thailand planned to launch CBDC retail transaction testing. The project is expected to be rolled out fully within the next three to five years.

In May, local media reported that authorities planned to tighten registration requirements for Bitcoin exchanges. In particular, they could be required to scan chips embedded in citizens’ ID cards when opening new accounts.

In June, the Securities and Exchange Commission of Thailand announced possible regulation of the DeFi sector. In the same month the agency barred local trading platforms from offering meme cryptocurrencies, fan tokens and NFT.

Earlier in July, the regulator accused the Bitcoin exchange Binance of operating without a license. The Commission filed a complaint with the national police’s anti-economic crime unit.

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