Thailand bans use of crypto for payments — but not trading and investing

Thailand's Securities and Exchange Commission (SEC) announced Wednesday that it is banning the use of cryptocurrencies as a means of payment for goods and services from April 1.

The decision comes two months after the SEC, the Bank of Thailand and the country's Ministry of Finance jointly said that they plan to ban crypto for payments to avoid financial stability and economic system risks.

The SEC today said crypto operators that provide payment services must stop doing so within 30 days from the effective date of new rules. However, it clarified that the new rules won’t affect trading or investment in cryptocurrencies.

Earlier this month, Thailand's government also relaxed tax rules for crypto investors. They can now offset annual crypto losses against gains and get a value-added tax exemption of 7% for crypto trading on authorized exchanges.

Thailand, Southeast Asia's second-largest economy, is also ahead in the game of central bank digital currencies (CBDCs). The country plans to test its retail CBDC later this year as an alternative payment option for the public.

It has also been exploring wholesale CBDC since 2018 under Project Inthanon. The project is currently in its Phase III and is exploring the use of the digital Thai baht in cross-border payments.

AUTHOR

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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