Thailand plans to unveil detailed rules for digital assets to minimize risks to the financial system and provide greater investor protection as more people are drawn to cryptocurrencies, according to the central bank.
The Bank of Thailand will release a consultation paper on “Financial Landscape” in January that will seek a consensus around the red lines for those operating in the fields of digital currencies, green finance and related areas, Governor Sethaput Suthiwartnarueput said in an interview Monday. The rules will seek to promote innovation in technology, financial inclusion and manage systemic risks, he said.
The central bank is working with the nation’s Securities and Exchange Commission and the Finance Ministry to outline “what are the red-lines we don’t want to see,” Sethaput said. For example, “cryptocurrencies cannot become a means of payment,” he said.
Thailand’s rush to enact rules for digital assets comes amid growing appetite of cryptocurrencies worldwide as investors chase better returns from their savings amid low interest rates and an economic slowdown.
The BOT last week cautioned commercial banks against “direct involvement’ in trading of digital assets, citing their high volatility and potential risks to financial and payment systems.
“We want to ensure that we strike the right balance between allowing financial innovation and managing risks,” Sethaput said. The new rules will provide adequate safeguards for consumers as “risks are under-appreciated” currently, he said.
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