Effective from 1 April 2022, the Securities and Exchange Commission of Thailand prohibits digital asset business operators from facilitation the use of digital assets as a payment method for goods and services in order to prevent the potential impacts on the national financial system and economy as well as potential risks toward both public and business sectors such as:
- Risk on loss due to price volatility
- Cybersecurity risk
- Risk on personal data leakage
- Exploitation as a money laundering tool
The regulation contains the following provisions:
- Digital asset business operators of all types are prohibited from providing services or acting in any manners of supporting or promoting the use of digital assets as payment method for goods and services, which include advertising, soliciting or presenting oneself as ready to provide payment services to shops or establishing a system or a tool for facilitating payment of goods and services, or opening a digital wallet for the purpose of using digital assets as a means of payment for goods and services, etc.;
- In the case where a digital asset business operator finds that a client uses the account opened for the purpose of trading digital assets as payment method for goods and services, the digital asset business operator is required to issue a warning regarding the misuse of the account for the wrong purpose in contrary to the terms of service, and take action on the client who fails to comply with the terms of service, which shall include temporary suspension or termination of service or any other actions in similar manners.
The existing digital asset business operators are required to comply with the regulations within 30 days from the effective date or until 1 May 2022. In view of this new regulation, the SEC clarifies that it only bans the use of crypto or other digital assets for payment of goods and services but crypto trading and digital assets are still allowed.
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