Thailand’s central bank has banned financial institutions from getting involved in cryptocurrency transactions for fear of possible problems from the unregulated trading, Reuters reported.
“Banks are prohibited from investing or trading in cryptocurrency, offering cryptocurrency exchanges and creating platforms for cryptocurrency trading,” the central bank’s governor, Veerathai Santiprabhob, said in a circular.
They are also banned from allowing clients to use credit cards to buy cryptocurrency, and from advising customers on investing or trading in cryptocurrency, the bank said.
The circular also cautioned that cryptocurrency investment is extremely risky and that no laws regulating digital tokens have yet been passed in Thailand. As such, they are not considered legal tender in the country.
Therefore, the Central Bank is worried that cryptocurrencies may be used in illegal activities such as money laundering or supporting terrorism.
BX Thailand, Thailand’s only crypto exchange, rushed to reassure customers by stating:
“They [BoT] actually are banning banks and money institutions from investing in cryptocurrency but we are an exchange and are not affected.”
In September 2017, the Thai Securities and Exchange Commission stated that in its view, the tokens issued in some ICOs may possess features of securities, as they are defined under the country's Securities and Exchange Act.