According to the Central Bank of Thailand, Thailand plans to publish detailed rules for digital assets to reduce risks to the financial system and provide greater protection for investors as more and more people become interested in cryptocurrencies.
The Central Bank of Thailand will release an advisory document titled “Financial Landscape” in January to build consensus on requirements for individuals working in digital currencies, green finance and related areas.
The Central Bank is working with the country’s Securities and Exchange Commission and the Ministry of Finance to ensure conditions for the safe use of cryptocurrencies.
Thailand’s rush to enact regulations on digital assets comes amid growing demand for cryptocurrencies around the world. Faced with low-interest rates and an economic downturn, investors are seeking a better return on their savings.
Previously, the Bank of Thailand had warned commercial banks not to participate directly in the trading of digital assets. It justified this with the high volatility and potential risks for the financial and payment system.
The central bank’s retail digital currency, which will be tested next year, will make financial inclusion in Thailand more effective without jeopardizing the stability of the financial system. The additional trials with wholesale central banks have already reduced the cost of cross-border transactions and also increased efficiency.
The consultation paper will also address basic financing rules linked to environmental, social, and governance indicators to avoid losses as new financial flows continue to require infrastructure.