Bank of Thailand bans commercial banks from trading cryptocurrency

T L; DR breakdown

  • Bank of Thailand bans commercial banks from trading cryptocurrencies
  • A bank spokesman said about the volatility of prices.
  • Thailand’s Tourism Industry Calls For Cryptocurrency Holders To Visit

Trading digital currency is very profitable, and this is if the trader knows what he is doing in the market. Despite this, the market has become the target of several malicious users, forcing countries to regulate the sector or ban it entirely. In the latest update, the Bank of Thailand announced that it has banned all commercial banks in the country from providing cryptocurrency trading services.

Bank of Thailand spokesman voices concerns over price volatility

The statement was circulated yesterday through a senior member of the Bank of Thailand, Chayawadi Chai-Ananta. In their statement, the executives raised a number of issues related to cryptocurrency trading, but were mainly based on price volatility. Since banks have a moral obligation to keep cash for customers, they shouldn’t be around cryptocurrencies.

This latest announcement is the result of several key partnerships between commercial banks and cryptocurrency exchanges across the country. Bitkub announced last month that it had agreed on the details and signed a partnership agreement with Siam Commercial Bank. Another cryptocurrency exchange announced the completion of a massive funding round in August.

Bank of Ayudhya led the funding round and raised $ 1.3 billion. The Bank of Thailand is still unconditionally opposed to digital assets, although most people in the country are moving to it. Another senior Bank of Thailand member, Sakkapop Panyanukul, has advised businesses on the risks of digital asset management.

Thailand Tourism Industry Continues To Invite Cryptocurrency Holders

The Bank of Thailand has previously talked about some of the disadvantages of using digital assets as payments for purchased goods and services. Chai-Anant believes that people need to ditch digital assets entirely. He listed several risks associated with their storage and use, including theft, price spikes, money laundering, and identity theft.

He believed that widespread use could reduce the stability of any system and jeopardize consumer protection. This recent warning came after Thailand announced that it had completed preparations to welcome crypto-rich visitors to the country. While the travel industry wants people to bring their cryptocurrencies, the Bank of Thailand wants them to be on the lookout. Thailand values ​​the tourism sector as one of the most lucrative sectors.

The fallout from the coronavirus pandemic has temporarily halted revenue generation in this sector. While cryptocurrency holders are encouraged to visit, the country continues to see low turnout.