Thailand to ban use of cryptocurrencies in payments

From 1 April 2022, businesses in Thailand were advised to stop accepting payments in digital assets. This requirement is contained in the notice issued by the local Securities and Exchange Commission (SEC) following a joint study with the central bank.

“Such payments could affect the stability of the financial system and the economy as a whole, creating risks for the public and businesses,” — the document says.

Among the risks cited are: loss of value due to price volatility, cyberattacks, money laundering and leakage of personal data.

Companies will be prohibited from advertising the acceptance of payments in digital assets, and from creating systems, tools and wallets to facilitate crypto transactions. Violators face temporary suspension or termination of the service. To comply with the requirements, companies will have until the end of April.

Use of cryptocurrencies for investment purposes is not prohibited, the regulator emphasised.

The recommendation formed part of the process launched in December 2021 to create a regulated cryptocurrency market.

The document states that the central bank and the SEC recognise the benefits of blockchain and support its use for further innovation.

In February, the Thai authorities rejected plans to levy a 15% income tax on digital asset transactions. The government decided not to collect 7% VAT on transactions on authorised exchanges from April 2022 to December 2023.

In June 2021, the SEC considered regulating the DeFi sector.

Previously, the central bank announced the rollout of rules regarding stablecoins backed by foreign currencies, assets, as well as algorithmic “stablecoins”.

Earlier local media reported that the Bank of Thailand and the Phuket Tourist Association were studying the possibility of paying with cryptocurrencies for Russian tourists.

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