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Thailand crypto owners will soon no longer be able to use their digital currencies such as Bitcoin (BTC) and Ethereum (ETH) to pay for purchases. The country has announced that it will start banning payments using cryptocurrencies and other digital assets starting next month.
On Wednesday, Thailand’s Security and Exchange Commission announced that it will ban the use of crypto as a payment method for goods and services starting April 1. The ban will apply to all cryptocurrencies including Bitcoin, according to Nikkei Asia.
However, the regulator clarified that it will only ban crypto’s use in payments but the trading of crypto and other digital assets are still allowed. Meanwhile, digital assets payment operators must halt their services by the end of April.
The regulator said that the decision came after discussing the risks and benefits of digital assets with the Bank of Thailand, the country’s central bank. These risks include potential losses due to price volatility, money laundering, and cyber theft.
The SEC added that the restrictions on crypto such as BItcoin for commercial transactions are in line with regulations in the U.K., Europe, and other Asian countries such as Malaysia and South Korea, Bloomberg reported.
The ban on crypto payments arrived just as the use of digital currencies is becoming more widespread in Thailand. In fact, a major retailing company, The Mall Group, just started to install digital asset payment devices at its shopping centers last December that would have allowed crypto owners to use their tokens in paying for purchases.
The use of crypto has been reached Thailand’s real estate sector. A real estate firm under the CP group conglomerate even sells properties that can be paid for using crypto.
On Wednesday, the central bank also proposed to put a cap on commercial banks’ investments in digital assets of up to 3 percent of their capital. Bank of Thailand Assistant Governor Roong Mallikamas explained that the cap will help shield depositors’ confidence in lenders and the Thai financial system.
