Central Bank of Thailand issues guidelines for banks to refrain from cryptocurrency -related transfers

thai cryptocurrency

Looks like more and more central banks all over the world are refraining from any activity that is related to cryptocurrency. The latest to join the list is the Gov. of the Central bank of Thailand, Veerathai Santiprabhob. He has clearly issued guidelines to the banks to stay away from cryptocurrencies.

The circular which was released by the Central bank clearly states that the banks have to stay away from any activity which is related to cryptocurrency. This also involves supporting the bank accounts of cryptocurrency exchanges as well as other trading platforms. According to the circular, cryptocurrency exchanges, as well as trading platforms, are not at freedom to operate in the country.

Furthermore, the circular states that the banks should warn the customers regarding the risk of cryptocurrency trading. Also, they should discourage the use of credit cards for cryptocurrency trading. All over the world, many high-profile banks have already banned the usage of their credit cards for cryptocurrency trading or investments.

According to the Central bank of Thailand, the financial transactions in cryptocurrencies need to be curbed down to avoid any illegal activity.

Upcoming cryptocurrency regulations:

The plan of the government of Thailand is not to ban cryptocurrency. The regulations pertaining to cryptocurrencies will be launched soon. Also, in the last few months, Securities and Exchange Commission of Thailand has also made it clear that with the help of right regulations, it will indeed support ICOs.

The problem is that the regulatory framework is not yet ready. Till the time, the regulatory framework actually becomes ready; there will be curbs on the cryptocurrency investments as well as trading.

The circular clearly states that the banks have to stay away from cryptocurrency related activities till the time regulations are formed. This clearly indicates that sometime in the near future, the central bank or the government will be creating proper regulations. With the help of these regulations, banks will again be able to provide services to their customers pertaining to cryptocurrency trading as well as investment. Until that time, however, it looks like the going is just about to get tough for the cryptocurrency traders and investors in Thailand.

This poll, however, does not come as a surprise as most of the central banks and governments all over the world are cracking down on the usage of the traditional financial system for trading and investing in cryptocurrencies. Thailand is just latest to join the list of countries like US, China, South Korea.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.

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