On Wednesday, Thailand’s Securities and Exchange Commission (SEC) issued orders banning the use of cryptocurrencies as payments for goods and services. This will be valid from April 1.
According to the SEC, the crypto payments could drop Thailand’s economic stability.
Thai users held more than $3 billion worth of cryptos this year. A massive increase compared to just a few years ago. Infact, in 2021, transaction volume increased by about 600% from November 2020 to April 2021.
Crypto data aggregator Chainalysis ranked Thailand as third in its index of countries leading DeFi adoption in 2021.
Recently, Thai’s finance ministry cabinet relaxed the tax burdens of Thailand’s crypto investors from April 2022 until the end of 2023. Also, the cabinet approved tax relief measures, including the exemption of a 7% value-added tax (VAT) on cryptocurrency trades on regulated exchanges, to promote the crypto industry.
Overall, This move is likely motivated by the large amount of volatility seen in the crypto market.