Cryptocurrency Regulation: Bank of Thailand to Release Regulatory Framework to Protect Investors

The Bank of Thailand (BoT) has announced that it could present a comprehensive cryptocurrency industry regulation framework next month. The framework will focus on reducing the risks associated with the cryptocurrency industry and provide better protection for investors.

The Governor of Thailand’s apex bank, Sethaput Suthiwartnarueput, noted that the body will release a consultation piece on “Financial Landscape” in January 2022, adding that the document will highlight the boundaries for dealers of Bitcoin and altcoins.

Despite the growing interest in crypto and other digital assets, investing in them comes with certain hidden risks. This is why the proposed regulatory framework aims at providing better protection for crypto investors.

The BoT will collaborate with Thailand’s Securities and Exchange Commission and the Finance Ministry to deliver a multifaceted regulatory approach. The trio will also ensure that digital assets are not used as a payment tool within the jurisdiction of Thailand.

The BoT governor also cautioned that digital assets are significantly volatile despite the profit potential they present. The central bank of Thailand also advised local financial institutions to steer clear of cryptocurrency, citing intense volatility risks. The apex bank added that the widespread use of Bitcoin and other cryptos could impair the BoT’s ability to effectively monitor the national economy.

Australia Also Considering Cryptocurrency Regulation

Meanwhile, Australia has also indicated an interest in regulating the crypto industry within its borders. Federal Treasurer Josh Frydenberg revealed that local authorities would present a potential reform within the next 12 months.

Frydenberg noted that the aim is to develop a better ecosystem for crypto traders in Australia, enforce a regulatory framework on crypto exchanges, and launch a central bank-issued digital currency.

Reports show that the reform proposal would be the biggest for Australia in more than two decades. The primary goal is to create a regulated environment for Aussies to trade crypto. Frydenberg added that:

“For consumers, these changes will establish a regulatory framework to underpin their growing use of crypto assets and clarify the treatment of new payment methods.”

 

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