Thailand bans crypto for payments over money laundering concerns

Thailand, known to be a crypto-friendly country, is now banning the use of cryptocurrencies as a means of payment for its citizens from April 2022.

Citing money laundering concerns, the country’s Securities and Exchange Commission is also looking to regulate crypto businesses, such as asking to disclose service quality and IT usage information. Meanwhile, the SEC made a point of noting that it is not banning the trading and holding of digital assets.

The statement released Tuesday outlined the risk of crypto assets on Thailand’s financial system and the overall economy. Among other things, it pointed out the risk of loss of value due to price volatility, risk of cyber ​​theft, risk of personal data leakage, and heightened risk of money laundering. The notice added:

“The SEC has therefore considered exercising its powers in accordance with the relevant legal framework. To supervise the services of business operators not to use digital assets as a medium for payment of goods and services. This may result in the widespread adoption of digital assets in addition to investment purposes.”

Moreover, the regulator has warned the country’s digital asset service providers to not engage in activities that promote the use of crypto for payments. They are refrained from establishing a system or tool to facilitate the payment of goods and services.

Earlier last month, Thailand authorities scrapped a 15% tax on cryptocurrencies capital gains tax after meeting with fierce opposition from the country’s traders.

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