Thailand’s central bank has given the thumbs up to Thai banks to set up their own subsidiaries to manage crypto.
The Bank of Thailand (BoT) has permitted local banks to distribute tokens, provide crypto brokerage services, invest in crypto through their departments, and run crypto businesses.
Thought this might seem as a crypto breakthrough for Thailand, paradoxically, the banks are still not allowed to directly deal with digital currencies. While crypto-dealing offices are permitted, crypto-related services, these are not for the public. Only businesses approved by Thailand’s Securities and Exchange Commission (Thai SEC) and the Office of Insurance Commission (OIC) can partake in the crypto services offered, mainly for the purposes of investing into crypto for the sake of innovating the finance system.
Thailand’s relationship with crypto hasn’t been a smooth one what with the government trying to control all crypto transactions and encouraging banks to advise individuals against crypto assets, however recently initial coin offering regulations were passed, making Thailand one of the first countries to have a fully regulated ecology for ICOs.
WHY IS THIS IMPORTANT?
- This decision by the Bank of Thailand could be a step towards a clear, regulated crypto future in the country.
- With more access to crypto services, if only to permitted businesses, the quantity of crypto activity is bound to increase in Thailand.