Thailand’s government prohibits the use of cryptocurrencies as a form of payment

<p>The government will prohibit the use of cryptocurrencies as a method of payment for goods and services, claiming that their increased use would jeopardise the country's financial system and economy.</p> <p>Businesses, including cryptocurrency exchanges, are prohibited from providing such payment services and from acting in a way that encourages the use of digital assets to pay for goods or services, the Securities and Exchange Commission said in a statement on Wednesday. The new regulation, however, will have no effect on trading or investment in digital assets, the agency stated.</p> <p>While the restrictions on the use of digital currencies for transactions will take effect on April 1, the regulator said businesses will have until the end of April to comply with the new rules. It stated that the restrictions on the use of cryptocurrencies such as Bitcoin for commercial transactions are consistent with European, United Kingdom, South Korean, and Malaysian regulations.</p> <p>Thailand's crackdown on digital assets comes as individuals, particularly young investors, ramp up their cryptocurrency trading in search of higher returns in the face of the country's economic slowdown. Commercial banks have been warned against direct involvement in digital asset trading due to the high level of volatility, uncertainty, and risk.</p> <p>The regulator stated that the development of any other unit of pricing than the Thai baht will increase the cost of economic activity and reduce the efficiency of monetary policy transmission. The Bank of Thailand stated that in the event of a liquidity crisis, it will be unable to provide assistance to various financial institutions in currencies other than the baht.</p> <p>The new rules require digital-asset service providers to cease advertising, soliciting, or establishing a system for the payment of goods and services via digital wallets. Businesses must warn customers against using digital assets for payments and may terminate their accounts if they are found to be in violation of t