Thailand’s central bank will be given more power to regulate cryptocurrencies.

Thai central bank

According to reports, Thailand is going to alter its law on digital assets in order to strengthen control of the cryptocurrency industry and empower the Thai central bank to regulate the industry. “Right now, the central bank has no room to join the regulatory framework other than to notify the public that cryptocurrencies are not a legal means of payment for goods and services,” the Thai minister of finance stated.

Thai Central Bank Will help with Crypto Industry Regulation

According to reports, Thailand intends to alter its law on digital assets in order to increase regulation of the cryptocurrency industry, particularly trading platforms.

Tuesday, Bloomberg reported that Thai Finance Minister Arkhom Termpittayapaisith stated that the anticipated modifications to the country’s crypto legislation will “include the central bank.” The Securities and Exchange Commission (SEC) of Thailand has been tasked with leading the regulatory overhaul, he noted. Under the 2018-enacted regulations, the securities regulator has the sole responsibility to oversee the crypto industry.

Following the suspension of withdrawals by Zipmex (Thailand) Ltd., a licensed cryptocurrency and digital token exchange in the country, the decision was made to revise crypto rules. Zipmex recently permitted the withdrawal of some coins, but filed for a moratorium in Singapore.

Noting that the existing regulatory framework for digital assets “is not clear to regulate the industry,” Monday, Termpittayapaisith was quoted as saying:

Right now, the central bank has no room to enter into the regulatory framework except for notifying that cryptos are not a legal means of payment for goods and services.

However, the official emphasized that the objective of stricter crypto rules is to give investors with better protection, not to stifle innovation or technological advancement.

The Thai minister of finance then compared cryptocurrency exchanges to regular financial systems. “For the stock exchange, you have the documentation proving your ownership. In the digital age, you have nothing other than the agreement you put at the bottom, which nobody reads,” he elaborated.

We are trying to protect investors as well as keeping the players in the industry in the fair terms.

In July, SEC General Counsel Ruenvadee Suwanmongkol announced plans to modify existing crypto rules. She explained that the plans included stronger requirements for crypto management and license.

“The extreme volatility of digital-asset prices has spurred the urgent need for improved supervision,” she noted at the time. “Our main focus will be to provide more protection for small investors, some of whom are putting most of their savings into these assets.”

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