Thailand SEC bans crypto payments, seeks disclosure of system failure from exchanges
In an ongoing effort to carve out a regulated crypto market for the general public, the Thailand Securities and Exchange Commission (SEC) announced a ban on the use of cryptocurrencies for payments. Parallelly, the Commission proposed a new rule that demands disclosure of service quality and IT usage information from crypto businesses including brokers, exchanges and dealers.
According to the notice issued by the Thai SEC, businesses in the region have been advised against accepting crypto payments from April 2022 after discussing its implications with the Bank of Thailand (BOT).
The joint study conducted by the BOT and SEC concluded that:
Some of these risks highlighted by the SEC include loss of value caused by price volatility, cyber theft, money laundering and personal data leakage. Once implemented, businesses in Thailand will be barred from — advertising accepting crypto payments and establishing systems, tools and wallets to facilitate crypto transactions.
Businesses found in noncompliance with the new crypto laws will be subject to legal actions including temporary suspension or cancellation of the services:
Moreover, the Thai SEC proposal aims to further ensure investor security by gauging the quality of the services delivered by the crypto businesses. According to a rough translation, the SEC’s proposes digital asset operators to:
In addition to sending monthly reports to the Thai SEC, the proposal also directs crypto businesses to disclose the reports on their official website within the same timeline.
A graph shared by the SEC further highlighted various complaints received over the past 12 months related to system failure, services that do not meet the desired conditions, shopping and others. Based on the data,
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