Thai Crypto Ban: Will the New Regulations Affect the Crypto Industry in Thailand? yes and no say Raymond Hsu, CEO and co-founder of capital.
Many people in the blockchain industry over the last year have been saying that Thailand will become the crypto hub of Southeast Asia, similar to what United Kingdom has been doing in Europe.
Large Thai companies were recently torrential money into Bitcoin mining as the cryptocurrency boom swept through the country, ignoring central bank warnings of risk and volatility. The government even eliminated its planned 15% withholding tax on CRYPTOCURRENCIES, after the decline of the cryptocurrency industry. And we saw a major collaboration between the country’s Chulalongkorn University and the blockchain network, Tezos, leading to the creation of the country’s first network. blockchain research and education program.
All the news and events coming out of Thailand, from the big crypto companies to the government, said that Bangkok was on its way to becoming the crypto hub of the region. And then out of the blue there was some very big news from their regulators that has rattled some investors.
Thai Crypto Ban: Payments Prohibited
Although Thailand leads the world in the proportion of Internet users who own cryptocurrencies (20.1% of Thais aged 16-64), the country’s regulator, the Securities and Exchange Commission, announced that it has banned payments for goods and services with cryptocurrencies, starting from April 1st.
The ban is intended to prevent financial instability, according to the Thai Securities and Exchange Commission. The risk of cyber theft was cited as another concern.
But is this a complete and true ban on cryptocurrencies altogether? Not at all.
Thai Crypto Ban: Expected
In fact, I think the ban on crypto payments by the regulator in Thailand was expected. It is still normal for governments to protect their fiat currency. It allows them to track illicit activities and monitor the economy. I get it, Thai officials believe that the widespread use of cryptocurrencies will harm the country’s financial system and economy.
The good news is that crypto businesses now have a clearer idea of what they can and cannot do in Thailand. That is something very important: when regulations become clear, crypto platforms can avoid risks and focus on innovation.
A ban on crypto payments is unlikely to change the future of Thailand’s growing blockchain and cryptocurrency industry. There are already tons of major crypto platforms that are hiring people and serving their clients with trading services, and this is just the beginning of what we will see in the future.
From currency to digital asset
What the Thai government seems to be doing is banning the use of crypto payments. But they are adopting them as digital assets instead; an activity that they have not prohibited.
This means that Thai crypto enthusiasts and investors can still buy bitcoin and other cryptocurrencies, HODL, as well as stake on a crypto wealth management platform to get a high return on their digital assets.
Thai crypto investors can also look for high returns in the world of decentralized finance, including buying NFTs, trading land in the metaverse, and exploring all the fascinating regions of the fast-growing metaverse. So even though cryptocurrencies cannot be used to pay for goods and services, people can still use them to increase their wealth and enjoy all the benefits that come with this new digital age.
Thai Regulator Continues to Support the Crypto Industry
We also want to note that the Thai regulator said it would emphasize and support the use of crypto technologies, in line with the country’s broader stance on digital assets. Thailand has been one of the first countries to develop a digital currency backed by its central bank.
Thailand has even relaxed tax rules for cryptocurrency trading until the end of 2023 to boost the industry, the regulator recently said, showing that the government clearly wants to embrace and develop its crypto industry.
While Thailand’s ban on crypto transactions is a blow to Bitcoin’s principles, the country’s digital asset industry will continue to grow very rapidly in the years to come.
In other words, the ban on Bitcoin, Etherand other digital assets that are used for payment are unlikely to make a dent in Thailand’s almost $4000000000 crypto industry.
About the Author
raymond hsu is the CEO and co-founder of capital, a leading cryptocurrency wealth management platform. Cabital’s mission is to help empower people from all walks of life to generate high-yield passive income from their digital assets and create a more sustainable financial industry. Before co-founding Cabital in 2020, Raymond worked for fintech and traditional banking institutions, including Citibank, Standard Chartered Bank, eBay, and Airwallex.
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source: beincrypto.com
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