The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance have jointly reviewed the benefits and risks of digital assets. They deem it necessary to regulate the use of digital assets as a means of payment for goods and services, to avert potential impacts on the country’s financial stability and economic system.
According to a joint press release issued by the three agencies on 25 January 2022, digital asset business operators have expanded their business to cover services related to the use of digital assets as a means of payment for goods and services. Some have solicited businesses by offering to facilitate merchants and businesses in accepting digital assets as payment for goods and services, such as by setting up digital asset settlement systems. This may result in a wider adoption of digital assets as a means of payment, aside from its usage as investment, which could potentially impact financial stability and the overall economic system.
The use of digital assets in this manner could also pose further risks to consumers and businesses through price volatility, cybertheft, personal data leakage, or money laundering.
Recognizing such risks and implications, regulators will consider exercising power in accordance with the relevant legal frameworks to limit the widespread adoption of digital assets as a means of payment for goods and services.
Further regulatory guidelines will be issued for certain digital assets that are supportive of the financial system and financial innovation while not posing systemic risks. Feedback from relevant stakeholders and the general public will be taken into consideration to determine the appropriate regulatory frameworks.
Mr. Sethaput Suthiwartnarueput, BOT Governor, states that the BOT takes into consideration both the risks and benefits of digital assets, including the underpinning technologies. At present, widespread adoption of digital assets as a means of payment for goods and services poses risk to the country’s economic and financial system. Therefore, clear supervision of such activity is needed. However, technologies and digital assets that do not pose such risks should be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public.
Ms. Ruenvadee Suwanmongkol, SEC Secretary-General, states that the SEC, as the regulator for digital asset business operators, has a policy to promote the development of digital asset businesses alongside consumer protection and places emphasis on utilizing digital assets to develop the country’s economy and society. After discussions with the BOT and the Ministry of Finance, the SEC has conducted a public hearing regarding the guidelines for using digital assets as a means of payment for goods and services to determine the appropriate frameworks in due course.
Source: The Government Public Relations Department
