Thailand’s Security and Exchange Commission (SEC) announced on Wednesday its decision to ban cryptocurrencies as means of payment, effective from April 1, 2022. However, Thai people can still invest and trade digital assets.
Further, the announcement also stressed the risk on the Thai financial systems from the usage of cryptocurrency as payments and the inability of the Thai central bank to step in and provide assistance in case of any loss of value.
“[Crypto payments] may affect the stability of the financial system and overall economic system including risks to people and businesses,” the regulator said after a joint study of the industry by the Thai central bank and the securities market regulator.
Cryptos Are Popular
Digital asset investments and trading have become very popular in Thailand over the past few years. Though crypto payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
Read this Term have not become mainstream yet, many businesses started to accept them.
The latest order came only a couple of months after the Thai authorities announced plans to regulate the crypto payments industry in the country.
After the law becomes effective, none of the Thai businesses can accept or advertise taking cryptocurrencies as payments. In case of any violation, the business will face legal actions, including temporary suspension or cancellation of the services.
But, both the central bank and the securities market regulator, along with other local government agencies, are certain about the benefits of underlying technologies, including blockchain and value, and support the use of technology to further innovation.
In addition to banning crypto payment, the Thai SEC also proposed a new rule for disclosure of service quality and IT usage information from crypto businesses that will include brokers, exchanges, and dealers.
Thailand’s Security and Exchange Commission (SEC) announced on Wednesday its decision to ban cryptocurrencies as means of payment, effective from April 1, 2022. However, Thai people can still invest and trade digital assets.
Further, the announcement also stressed the risk on the Thai financial systems from the usage of cryptocurrency as payments and the inability of the Thai central bank to step in and provide assistance in case of any loss of value.
“[Crypto payments] may affect the stability of the financial system and overall economic system including risks to people and businesses,” the regulator said after a joint study of the industry by the Thai central bank and the securities market regulator.
Cryptos Are Popular
Digital asset investments and trading have become very popular in Thailand over the past few years. Though crypto payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
Read this Term have not become mainstream yet, many businesses started to accept them.
The latest order came only a couple of months after the Thai authorities announced plans to regulate the crypto payments industry in the country.
After the law becomes effective, none of the Thai businesses can accept or advertise taking cryptocurrencies as payments. In case of any violation, the business will face legal actions, including temporary suspension or cancellation of the services.
But, both the central bank and the securities market regulator, along with other local government agencies, are certain about the benefits of underlying technologies, including blockchain and value, and support the use of technology to further innovation.
In addition to banning crypto payment, the Thai SEC also proposed a new rule for disclosure of service quality and IT usage information from crypto businesses that will include brokers, exchanges, and dealers.
