Bank of Thailand ordered banks to stop cryptocurrency trading

Thai banks don't want local banks or businesses to use cryptocurrency, and the banking industry is always trying to attract the whales of cryptocurrency.

The Bank of Thailand has said it does not want companies to trade directly in the cryptocurrency market.

On December 7, Chayawadee Chai-Anant, chief executive of the central bank, announced the decision, addressing the risks associated with high interest rates.

"We don't want banks to be directly involved in digital assets because of (and should be responsible for) the risks to consumers and the public."

Banks are still investing in local cryptocurrency exchanges as central banks launch their new digital asset campaign, according to the Bangkok Post.

In November, Siam Commercial Bank (SCB), Thailand's oldest company, announced it would acquire 51% of Bitkub, Thailand's largest cryptocurrency exchange. At the end of August, the Zipmex cryptocurrency exchange secured $ 1.3 billion in financial assistance from Ayudhya Bank, the country's fifth-largest lender.

The Bank of Thailand (BoT) has worked harder on digital assets despite the popularity of digital assets among Thais, businesses and banks.

Bank of Thailand Managing Director Sakkapop Panyanukul last week warned companies not to accept cryptocurrencies, saying, “If other currencies are widely used, it could hurt the business. Money in the middle is the ability to do business. When it comes to tokens that are not sponsored by the asset, they are called “free coins”.

Central banks have also raised concerns over the use of cryptocurrencies to pay for goods and services. In a statement released Dec. 8, Chai-Anant noted that digital assets can harm consumers and consumers “as they interfere with the evolution of costs and risks of online fraud, personal data breach and financial activity ”.

“If digital assets are widely used as a means of payment for goods and services, these risks could affect payment security, financial security and the economy. protect consumers.

Two weeks after the Tourism Administration of Thailand stepped up efforts to encourage people rich in cryptocurrency to visit Thailand, Bot warned. The Thai Tourist Board has declared the country "crypto friendly", but the central bank doesn't want Thailand to be too friendly.

The Thai economy is heavily dependent on tourism, which has been hit hard by the spread. Most of Thailand remains closed. Although Thai banking companies have made efforts to attract cryptocurrency and other names to countries where banks are unwilling to use digital, few visited Thailand at the time. eh.