03-24-2022 icon

Thailand to Legally Restrain Crypto as Standard of Deferred Payment

By Lucy Adegbe
Elizabeth Waren

The Thailand security and exchange commission has, in a recent report, stated its readiness to officially stop the use of crypto in making payments from the 1st of April.

This commemorates its official release earlier this year on the need to manage the usage of cryptocurrency in making direct purchases. One of the reasons for this proposed regulation was based on the platform’s likely deviation from its primary investment purpose which could hamper economic stability.

Their concern is also centred on the inefficiency of crypto being used to purchase goods and services due to its volatility, as well as the high trading rate.

There has been an unfavourable money laundering situation through these decentralized currencies which led to the incapacity of the central bank to proffer necessary effort of assistance. Hence, their aim is not tied around incapacitating easy payment methods but ensuring stability from various viewpoints.

The regulatory body, however, buttressed a point concerning the ban not being a means to ending other cryptocurrency exchange activities and virtual investments. 

Businesses will be compelled to comply with this new cryptocurrency regulatory policy or face certain penalties which may include a temporary or permanent halt of services. 

Thailand SEC also added, in a report in March, the 7% VAT exclusion on all state-approved cryptocurrency exchange activities. This improved tax law is bound to enable traders to cancel out yearly losses attached to their profits on virtual currency investment.