Thailand to ban use of cryptocurrencies for payments from April 1

Under the new regulations, crypto companies should stop promoting the use of digital currencies as a way to pay for goods and services

23.03.2022 - 11:00

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What’s new? As of April 1, Thailand will ban the use of cryptocurrencies as a means of payment for goods and services. This is stated in a statement from the Securities and Exchange Commission of Thailand (SEC). Commercial operators, including cryptocurrency exchanges, should not provide payment services using digital assets. The SEC said that the wider use of cryptocurrencies threatens the country’s financial system and economy.

Link to the SEC’s statement

What else does the statement say? Thailand’s commercial banks have warned against directly engaging in digital asset trading because of the high volatility, uncertainty, and risk. Even though digital assets will be banned as payment tools, trading and investing in them will still be allowed.

What preceded it? In January, the Thai government discussed new regulations on cryptocurrencies and considered imposing a 15% tax on digital asset trading. However, in February, the country’s authorities rejected an income tax on virtual currency transactions.

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