Thailand Bans Crypto as Means of Payment

Thailand’s Security and Exchange Commission said on Wednesday that it will ban the use of crypto as a means of payment from April 1.

• The regulator cited money laundering concerns and the inability of the central bank to step in and provide assistance as the reason behind the ban.
• The Thai SEC stressed this is not a ban on crypto trading and digital assets, which has become more popular among the locals in the last two years, just a ban on the use of crypto for payments.
• In January, Thai authorities announced a plan to regulate digital asset payments in the country.
• In the latest announcement, the Thai SEC said that digital assets do not provide improved efficiency to the payments market because of their volatility and high transaction fees.
• Last year, many domestic property developers looked to crypto as a way to revitalize interest in the country’s condominium market, which is largely geared towards foreigners.
• Thai authorities announced in early March that crypto trades on government approved exchanges will be exempt from a 7% value-added-tax (VAT) until 2023.

Read more: Thai Authorities Plan to Regulate Crypto as Means of Payment