The Bank of Thailand has revealed plans to allow virtual banks to operate in the country for the first time. Financial firms will be able to provide services by 2025.
The Consultation Paper on Virtual Bank Licensing Framework published by the central bank says that applications will be available later in 2023 allowing virtual banks to act as financial services providers. The move focuses on increasing competition and boosting Thailand’s economic growth.
The Bank of Thailand will issue three different licenses for interested companies by 2024. There are at least 10 parties interested in granting permissions, the report states.
Regulations and supervision for virtual banks will be the same as those for traditional commercial banks under the licensing framework. Moreover, qualified applicants will need to meet certain requirements.
According to the central bank, virtual banks will be under a restricted phase during their first years of operation, which includes close monitoring to prevent financial systemic risks. Thailand’s Securities and Exchange Commission recently announced plans to tighten rules for crypto, aiming to expand investor protection. A strict set of guidelines for crypto ads is also being developed by the authority.
