- The Thai SEC has issued a ban on crypto as a means of payment, saying that their high volatility and the inability of the central bank to regulate them pose a big risk.
- It, however, made it clear that this wasn’t a ban on cryptocurrencies in general which have found massive adoption in the country.
El Salvador was the first to make the move and others like Paraguay and now Malaysia are weighing jumping aboard and making Bitcoin legal tender. However, Thailand won’t be one of them, with the country’s securities regulator banning Bitcoin payments effective April 1.
In an announcement today, the Thai Securities and Exchange Commission stated that it has banned crypto payments as it believes they may affect the country’s financial stability, posing a big risk to the country’s economy.
As with many other regulators, the SEC discredited crypto use as currency, saying it lacks in the qualities of sound money. Its volatility makes it unsuitable for payments, while its high risk of cyber theft makes it unsafe for use by the masses, it added.
In addition, crypto can be used for money laundering, the SEC said.
While the concerns are valid, they are outdated. Crypto has been proven to be among the least effective ways to launder money due to the public, open and immutable nature of the blockchain. Criminals who have relied on crypto to conduct crime have been tracked down easily, from the New York couple that stole $4.5 billion from Bitfinex years back to the hackers who wreaked havoc in the U.S demanding ransom payments.
The SEC isn’t banning crypto in Thailand, however. Thai investors have taken to crypto in their millions. The Chainalysis Global Crypto Adoption Index placed Thailand 12th globally for adoption and 7th for on-chain value received, ahead of the likes of Brazil, China and the Philippines.
And as Thailand bans crypto payments, another Asian nation is weighing making BTC legal tender. As CNF reported, Malaysia’s Communications Ministry has proposed following El Salvador’s footsteps and making crypto legal tender. However, the country’s central bank has long been anti-Bitcoin.
Read More: Malaysia deputy minister of communications advocates for Bitcoin to be legal tender
For El Salvador, the move to make Bitcoin legal tender hasn’t been as smooth as President Nayib Bukele anticipated. In the latest setback, the country’s Finance Minister Alejandro Zelaya has announced the postponement of a $1 billion Bitcoin fund that had been scheduled to be offered between March 15-20.
The Minister blamed the postponement on tough market conditions brought about by the war in Ukraine.
I think this is not the time. There are some moves on the planet.
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