Good news for Thailand’s banks: The Central Bank of Thailand (POT) gave the green light to the financial institutions for investments in crypto sector.
Subsidiaries of Thai financial institutions are now allowed to participate in crypto transactions, including the issuance of their own tokens. Investments in cryptocurrencies are now also allowed to affiliates provided they follow the rules established by their respective regulators. For the parent companies, the cryptographic activities of their subsidiaries are subject to a supervisory obligation with regard to the risks associated with the crypto market. In addition, banks must ensure that their subsidiaries operate in accordance with existing anti-money laundering and terrorism rules. Newly established subsidiaries must first apply for authorization from BOT through their parent companies.
The rules for financial institutions themselves are much stricter. For example, commercial banks are not allowed to issue tokens or invest in digital assets. These include, according to BOT, both tokens and cryptocurrencies. Furthermore, they are not allowed to participate in the crypto market through brokers or stock exchanges. Tokens may only be issued or purchased if the aim is to improve banking services. The Bank of Thailand argues that a “booming” commercial bank could undermine consumer confidence in the country’s financial institutions, given the relatively young and difficult-to-predict crypto market.
The Thai central bank is revising its circular of February with this push. In this, the banks of the country, the business with crypto currencies was largely prohibited . The change in mind of the BOT came not by chance: Since May 13th Thailand is one of the few countries in which for crypto currencies and ICOs legal framework were created. The Thai Securities and Exchange Commission (TSEC) has developed the rules and regulations. Among other things, it implies that cryptocurrency sellers must register with the TSEC, otherwise they face fines and jail sentences of up to two years.
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Categories: Crypto Currency