The emergence of digital assets proved to have its own set of pros and cons. Thailand’s Central Bank seems to be fending off any possible cons that could put its citizens at risk.
Those who detested or feared the volatile nature of cryptocurrencies decided to cling onto stablecoins. While the crypto-verse has been encountering a lot of scammy projects, the stablecoin market did not fall behind. Thailand’s latest announcement revealed that stablecoins that are privately issued could be harboring potential money laundering or cybercrime hazards.
Thailand Central Bank Labels Activities Pertaining To Stablecoin, “Illegal”
In a recent article published by the Bangkok Post, it was revealed that any activity related to stablecoins pegged to the Thai Baht, including trading and holding the assets would be considered illegal. The Bank of Thailand further pointed out that the Thai Baht Digital [THT] wasn’t under the legal purview of the government. This could further pave the way to easy money laundering and other cybercrime actions.
The Bank of Thailand’s assistant governor of the legal group, Pruettipong Srimachand, suggested that creating, issuing as well as circulating or using any material or token for cash would be causing the breach of Section 9 of the Currency Act 1958.
Srimachand further added,
“Such usage would ultimately affect the general public’s confidence in the stability of the national currency system, which is the cornerstone of all economic activities.”
Anti-money laundering laws along with strict KYC processes have become a must for every crypto platform. With perpetrators trying to garner easy money through scammy projects, the governments are trying to protect their citizens.
The increase in the popularity of crypto forced several countries to bring in more stringent laws to govern the crypto-verse. The Thai government also jumped onto the bandwagon and began licensing cryptocurrency platforms. The Asian country has licensed over 13 crypto firms to operate in the region. Prominent platforms like Bitkub, Huobi Thailand, BX, and several others managed to score approval from the Thailand Securities and Exchange Commission.