Siritida Ayudha, the deputy governor of the Thailand central bank, announced the recent development on Friday in an official briefing. In the briefing, Siritida said that the central bank is in contact with the government body in charge of the market regulation and other stakeholders before releasing the final outlook of the regulations of the stablecoins market.
Consultation with Bodies and Stakeholders is on the new Stablecoin Regulation
Also, she noted that the regulation of the stablecoins would be vast and comprehensive such that it will affect the diverse types of the stablecoins that are legally recognized. The categories of these stablecoins that will be regulated by the Thai Bank include the legal stablecoins that are backed by assets, those backed by foreign currencies, and those based on an algorithm.
The chief of the Thai Bank noted that other crypto assets that do not have affiliation with real assets would not be captured in the scope of the regulation. She said that cryptos like Ethereum and Bitcoin would not be under the scope of the regulation, and everyone investing in them will do so at their own risk.
There will be a need for the issuance of a recognized license for every issuer of the Baht-based stablecoins for it to be recognized and categorized as electronic money. However, the risk associated with permitting electronic money will be in the care of the Thai central bank, like illegal funding and money laundering.
These new developments came after the highest bank in Thailand had issued a warning earlier regarding THT – the new stablecoin backed by the Thailand Baht. And these listed categories of crimes like money laundering and internet theft have been their major concern.
The Bank of Thailand Now has its Focus on Exploring Digital Currency
The deputy governor has hinted that this new policy will put the country into the same standard as the likes of Japan and Singapore. She then made a confirmation that the bank will look into the advantage of having their digital currencies set up in the fintech industry and much more they are anxious to launch the innovation.
However, the crypto community has been stirred and is filed with the news of the crypto regulations released by the Thailand Securities and Exchange Commission. The draft of the regulation reveals that every new investor in the crypto space must have 1 million baht as their yearly income.