The Security and Exchange Commission of Thailand announced that from April of 2022, crypto will not be allowed as a payment method. On Wednesday, the regulator mentioned that the use of crypto could negatively affect the economy. They were posing risks to the financial system as well. The SEC went on mentioning more risks. Including loss of value due to volatility, the leakage of personal data, and cyber theft.
The decision to ban crypto came following the discussions between the SEC and the Bank of Thailand. They weighed the risks and benefits of crypto and concluded that crypto-related businesses should be put under regulation.
While the crypto payment restrictions of Thailand will go into effect on April 1, digital asset businesses that provide such services will have until the end of April to comply with the new laws, according to the Thai regulator.
Customers will be warned of such practices and are to cease all advertisement activity, including crypto payments.
The agency made sure to specify that they “see the benefits of various technologies behind digital assets such as blockchain and emphasize and support the use of technology to further innovation.”
The regulator also stated that it does not ban cryptocurrency usage for investment reasons.
Today’s news will likely shock many crypto Thai investors.