CCBeast Special


New Positive Rule from Bank of Thailand for Crypto Activities
Editorial Team

The Central bank of Thailand recently announced that the country’s financial institutions including the commercial banks can now engage in cryptocurrency activities. According to a publication from bcfocus.com, on August 1, the Bank of Thailand (BOT) issued a circular to all financial institutions in order to inform them about the new crypto-related regulations, which allow them to invest, issue, and sell cryptocurrencies.

This new circular cancelled BOT’s previous circular issued in February, which was asking the financial institutions to stay away from crypto-related activities. Bitcoin.com reported that this circular provides the conditions under which the financial institutions and their subsidiaries can engage in these activities.

The rules for financial institutions and subsidiaries are little different. According to the rule, new subsidiaries which desire to engage in crypto-related activities should apply for approval from the Bank of Thailand and that should to be done through their parent companies. However, it will be the crypto company’s responsibility to expose to the overall risks related to the crypto activity.

There will be also duty of the parent company to keep a record of whether the subsidiaries are following the guidelines or not. These guidelines include Anti-Money Laundering (AML), IT security, combating the financing of terrorism (CFT) and consumer protection.

According to BOT, financial institutions cannot issue cryptos or provide any service selling them. The BOT specifies that financial institutions cannot invest in digital assets which include “both tokens and cryptocurrencies.” Nevertheless, reportedly they can issue or invest in digital assets or cryptocurrencies for developing or improving purposes.

Financial institutions must not engage in crypto businesses, including as exchanges, brokers, or dealers or solicit or give advice on crypto investments to anyone that is an institutional or accredited investor as defined by SEC, bcfocus.com reported.

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