Since December last year, the Thai government has been working on drafting new legislation to oversee the activities of the crypto industry in the country.
The move is part of the government’s effort to establish a well regulated digital asset market for the concerned public, and the Thai Securities and Exchange Commission (SEC) followed up with an interim ban on the use of the digital token for payment pending when the government rolls out the full regulatory law.
Additionally, the SEC initiated a new policy requiring crypto businesses to disclose their complete service quality and data from crypto transactions.
According to the latest notice from the SEC, all businesses are to refrain from accepting payment in cryptocurrency effective April 20, 2022, following official collaboration with the central bank of Thailand.
The conclusion reached between the two government agencies is that payment in digital currency might impact the stability of the financial system of Thailand and the overall economic ecosystem, thereby negatively affecting the businesses and monetary policies of the government.
Risks Associated With Crypto Payment
The Thai SEC outlined some risks that may hinder the country’s economic progress. Some of the risks include the loss of value of the official currency, which is occasioned by volatility in price, money laundering and illegal transactions, and the loss of personal data belonging to individuals.
As soon as the new policy is approved, businesses and firms will be barred from making or promoting crypto payments or creating a new payment system, wallet, or tools to facilitate any cryptocurrency transactions.
Any business or organization caught sidestepping the ban will be subjected to stiff legal action that may lead to license suspension.
However, the SEC was quick to point out that the new notice was necessary to safeguard the security of investors and the quality of services rendered to the public by the crypto firms. As such, digital asset operators must forward monthly service quality reports to the SEC office for evaluation within the first five days of the following month.
In addition to this, businesses are to disclose a virtual copy of the report on their websites within the same timeline.
System Failure Complaints
According to the Thai SEC, it has received numerous complaints relating to system failure, below-par services, and other related dissatisfaction from most crypto business platform users.
A record released by the SEC shows how Thai investors faced a hurdle whenever they were to shop involving cryptocurrency. This might have been among the major reasons the SEC stepped in to regulate the industry.
Cointelegraph previously reported the move by the government of Thailand to begin working on new regulatory mechanisms to specify the red lines for the digital financial service industry.
The first week of the month has seen the finance ministry relax some of the crypto tax laws to promote investment in digital financial assets.
The new tax excludes crypto players from the 7% VAT tax when transacting on authorized crypto exchanges.
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