Bank of Thailand Has Allowed Commercial Banks to Deal with Cryptocurrencies

The Bank of Thailand has allowed local commercial banks to engage in cryptocurrency activities on the condition that these banks will get a permission from the Securities and Exchange Commission of Thailand (SEC).

According to the published set of rules, now commercial banks and financial institutions in Thailand and their subsidiaries, like asset managers, brokerage and insurance companies, etc., are allowed to invest in cryptos and issue digital tokens in certain cases, but at the same time, they need to follow certain rules listed in the set.

In turn, subsidiary companies will be able to trade cryptocurrencies, and also issue digital tokens if they are allowed by the Securities and Exchange Commission of Thailand (SEC) for brokers or the Thai Office of Insurance Commission (OIC) for insurance companies. New subsidiaries, created to invest in cryptos, will have to apply for permission from the Bank of Thailand.

Thai commercial banks and financial companies in are prohibited from making any cryptocurrency transactions relating to customers, or issuing digital tokens. Also, all activities must be subject to "strict risk management". But they have a right to advise clients on investing in the digital currency.

Nevertheless, this fact and new conditions should be considered as an improvement in relation to the crypto market. Indeed, quite recently, in February of this year, the Thai Central Bank banned financial companies from investing and trading with cryptocurrencies. So, we can say, that Thailand is moving towards legalizing cryptos.

by JustMarkets, 2018.08.08

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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