Early this year, the Bank of Thailand banned local banks from dealing with any cryptocurrency activities including letting customers purchase cryptocurrency using their credit cards. The main reason for the ban, according to the central bank’s governor, was the close association of cryptocurrency with illegal activities which included, but not limited to, money laundering. After the ban, the Thai government started formulating laws that would govern the country’s digital assets space. A law has finally been agreed upon. The new cryptocurrency law will start taking effect from today, Monday the 14th.
This new cryptocurrency law has introduced fines and jail terms depending on the nature of the crime, involving digital currency, that has been committed. Thailand recognizes virtual currency as digital assets.
The country’s Securities and Exchange Commission will be responsible for enforcing and overseeing the country’s cryptocurrency market.
From today, all those offering services involving cryptocurrencies will have to register with Thai’s SEC within 90 days from today.
According to the Straits Times,
“The royal decree stipulates that unregistered token brokers or those who perform token transactions through unregistered brokers will face a jail term of up to two years and fines of at least two times the token values, up to a maximum of 500,000 baht (S$20,930). Fraudulent filings could invite a five-year jail sentence. Those who carry out unauthorized business in digital assets face jail terms of between two and five years. They could also face fines of up to 10,000 baht for each day that the business was conducted.”
That’s not all, if others use your account to initiate a transaction, you face a jail term of one year. According to Dr. Anusorn Tamajai, an economist, the new law most likely will increase investor confidence in the regulated market.
With the passing of the new law, Thailand’s central bank has indicated that it may change its stance on cryptocurrency but it will rely on further directives from the country’s SEC.
Do you think the new cryptocurrency law will boost investor confidence and the general Thai crypto space?
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