The Governor of the Central Bank of Thailand Sethaput Suthivartnarueput said that he will submit an updated advisory document for the regulation of cryptocurrencies early next year.
Sethaput Suthiwartnarueput said the document will offer clear rules to ensure the protection of investors and cryptocurrency traders. The authorities’ desire to regulate the sector is linked to the growing interest in digital assets.
Trading volume on cryptocurrency exchanges rose to 221 billion baht by November this year, up from 18 billion baht last year, according to the Securities and Exchange Commission (SEC) of Thailand. Suthivartnarueput warned that the cryptocurrency market is highly volatile despite the benefits it can bring to the country’s financial system.
“We want to strike the right balance between financial technology development and risk management,” he said.
Suthivartnarueput also mentioned the digital currency of the Central Bank, which is scheduled to be tested next year. The introduction of a state cryptocurrency can be effective for the financial system, without compromising its stability. The experiment with the central bank’s wholesale digital currency has already helped reduce the cost of cross-border transactions and increase their efficiency, he said.
Earlier this month, the director of the Monetary Policy Department of the Bank of Thailand, Sakkapop Panyanukul, said that the central bank had abandoned the ban on the use of cryptocurrencies for trading, but was concerned about their impact on the country’s financial system. At the same time, the Bank of Thailand strongly recommends banks to stop using digital assets.
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