Thai Regulator: Necessity to Review and Regulate Digital Assets as a Payment Method for Goods and Services

On January 25, the Bank of Thailand (BOT), the Securities and Exchange Commission of Thailand (SEC), and the Ministry of Finance (MOF) of Thailand have joined forces to review and publish guidelines on the use of digital assets as payment instruments. Thailand's top regulator says it is necessary to review and regulate digital assets as a means of payment for goods and services. After careful consideration and assessment of all the pros and cons, the Joint Commission stated that the use of digital assets as a broad payment instrument could pose risks to the stability of the financial economy, including volatility risks, IT risks, compliance and legal risks. The Joint Commission believes that the country’s current payment infrastructure is sufficiently efficient that digital assets do not add any viable benefits to consumers or businesses. The joint committee also said that further guidance will be issued for specific digital assets that do not pose any systemic risk, which could include stablecoins or central bank digital currencies (CBDCs). The official statement states that a final decision on the guidelines will only be made after listening to feedback from stakeholders and the public.