[Blockchain Today Correspondent Lee Ji-eun] The Thai government, which has been working to prepare a new regulatory framework for cryptocurrency since the end of last year, announced that it is banning the use of cryptocurrency for payment, Cointelegraph reported on the 23rd (US time).
According to the report, the Securities and Exchange Commission (SEC) of Thailand is banning cryptocurrency payments as part of preparing to regulate the cryptocurrency market for the public interest, and cryptocurrency operators such as brokers, exchanges and dealers will be required to disclose service quality and IT usage rate information. rules were presented.
According to a notice issued by the SEC of Thailand, the SEC recommended that businesses in Thailand not accept cryptocurrency payments from April after discussing details with the Bank of Thailand.
In a joint study conducted with the Bank of Thailand, the SEC stated that “Crypto-currency payments can affect the stability of the financial system and the overall economic system, including risks to the public and businesses.” “Price volatility, cyber theft, money laundering, and personal information leakage are among the risk factors mentioned in the study,” he added.
If this regulation is enforced, companies will not be able to advertise on cryptocurrency transactions or payment in Thailand, and if they do, they will be subject to legal action such as suspension or cancellation of business activities. However, the Thai government said it plans to support the use of technology for future innovation by recognizing the technological advantages of cryptocurrencies such as blockchain.
In addition, based on the ‘Service Quality and System Capacity Utilization Report’, which will be submitted to the Thai SEC by cryptocurrency businesses every month, it will supervise general investors so that they can invest more safely. Cryptocurrency operators are also required to publish monthly reports on each company’s official website.
The Securities and Exchange Commission of Thailand emphasized that over the past year, various consumer complaints have been received, including system failures, poor service quality, and inconvenient shopping. According to related data, shopping-related complaints were the most frequent, and Cointelegraph analyzed that this may be the main reason for the ‘cryptocurrency payment ban’.
Meanwhile, in the first week of March, Thailand’s Ministry of Finance is said to have eased regulations related to cryptocurrency taxes to promote investment in digital assets.
According to a Cointelegraph report on this, the new tax policy will exempt cryptocurrency traders from 7% value-added tax (VAT) when transacting on accredited exchanges. It is also said that the policy will allow them to offset their investment gains and annual losses in several digital assets.
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