The regulations require that Commercial banks and other players engaged in cryptocurrency activities desist from engaging in some crypto activities.
New Circular, New Rules
Explaining that Thailand now has a regulatory instrument for cryptos, the Bank of Thailand states the conditions which financial institutions and their subsidiaries can now engage in tokens and cryptocurrencies. The rules are applied to financial institutions and the subsidiaries as well.
Rules for Subsidiaries
Brokerage, asset management, insurance, and life insurance are some of the financial products and services in financial institutions. While regulatory bodies are essential parts of financial institutions, insurance companies adhere to the Thai Office of Insurance Commission (OIC).
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The Bank of Thailand (BOT) has now approved companies’ engagement in cryptocurrency ventures including issuing digital tokens and investing in cryptos so long they adhere to the rules provided the stipulated rules are followed. For new subsidiaries preferring to engage and be active in crypto activities, they are required to apply for approval from the Bank of Thailand via their parent companies.
Rules for Financial Institutions
Banks are among financial institutions and they face more stringent regulations, unlike the subsidiaries. Arguing that the virtual asset terrain is still a young industry and therefore difficult to evaluate and manage risks. The Bank of Thailand is of the thought that financial institutions having cryptos would upset the financial setup. Here are four operations that financial institutions must refrain from.
Firstly, financial institutions are cannot issue digital tokens or offer services selling them. Then they can also not invest in digital assets. They also must not take part in crypto businesses like brokers or dealers, and exchangers. unless the company that is not an institutional or accredited investor according to SEC.
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Image Source: Bank of Thailand