Thailand is establishing a new regulatory framework for cryptocurrencies like Bitcoin in order to reduce risks and increase investor protection.
The Bank of Thailand will release a consultation paper in that will outline the red lines for the crypto industry, governor Sethaput Suthiwartnarueput stated during an interview:
“We want to ensure that we strike the right balance between allowing financial innovation and managing risks,” the official stated. The new rules will provide adequate safeguards for consumers as “risks are under-appreciated”
The central bank is working together with the Thai Securities and Exchange Commission and the finance ministry to point out restrictions specific to the crypto industry. The governor highlighted that, despite local authorities potentially recognizing digital assets as an investment product, their extreme volatility poses risks to the financial system. Authorities will also collaborate to adopt proper safeguards for future financial securities.
Thailand’s plans to enact new rules for cryptocurrencies come amid booming local cryptocurrency adoption.
