January 26, 2022
The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance have jointly decided to regulate the use of digital assets as a means of payment for goods and services.
“Digital asset business operators have expanded their business to cover services related to the use of digital assets as a means of payment for goods and services,” said the joint statement released by BOT and SEC.
Some have solicited businesses by offering to facilitate merchants and businesses in accepting digital assets as payment for goods and services such as by setting up digital asset settlement systems. “This may result in a wider adoption of digital assets as a means of payment, aside from its usage as investment, which could potentially impact financial stability and the overall economic system,” it said.
Therefore the use of digital assets in this manner could also pose further risks to consumers and businesses through price volatility, cybertheft, personal data leakage, or money laundering, etc.
“Recognizing such risks and implications, regulators will consider exercising power in accordance with the relevant legal frameworks to limit the widespread adoption of digital assets as a means of payment for goods and services,” it said.
Further regulatory guidelines will be issued for certain digital assets that are supportive of the financial system and financial innovation while not posing risks to the financial system. Feedback from relevant stakeholders and the general public will be taken into consideration to determine the appropriate regulatory frameworks.
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About the author
Tsering Namgyal is the chief content officer of the Blockchain Asset Review.