BOT Bans Financial Institutions Crypto Transactions

The Bank of Thailand has issued a circular to financial institutions stating that it will not engage in transactions related to cryptocurrencies.

With this strict control, the Bank of Thailand takes into account problems that may arise from cryptocurrency transactions where the issuer cannot be clearly identified or has no guarantor. There are also no ways to track the theft of valuable assets in the cyber world. Additionally, it states as a reason that they can be used as a means of money laundering.

Previously, the country’s oldest bank, Siam Commercial Bank (SCB), took a stake in the largest crypto exchange in Thailand, Bitkub, after acquiring over 51% of the shares. However, this is not considered illegal because SCB was not directly involved in the digital assets business.

Therefore, in order not to affect the stability of the financial system and public trust, the BOT asks all financial institutions to cooperate. In addition, it specifies in which cases no cryptocurrency-related transactions shall take place:

  1. Investing or trading in cryptocurrencies for the benefit of the institution and its clients.
  2. Provide cryptocurrency exchange services through institutional service channels.
  3. Creating a platform for customers to engage in cryptocurrency transactions.
  4. Allowing customers to use credit cards to buy cryptocurrencies.
  5. Support or advice on investing or exchanging cryptocurrencies.

This reflects that central banks clearly do not want to be positive towards cryptocurrencies.

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