The Bank of Thailand (BoT) has released a new circular, updating its previous regulations that effectively banned financial institutions from dealing in cryptocurrencies.
The new rules effectively loosen up the strict nature of the previous regulations, giving commercial banks and alike the ability to buy, sell and invest in crypto through subsidiaries, but not trade directly. Furthermore, the subsidiaries can only deal with other Thai Securities and Exchange Commission (Thai SEC) approved businesses and cannot trade directly with members of the public
Rules relating to financial institutions differ slightly from those applied to subsidiaries. According to the new rules, subsidiaries can now apply for approval from the Bank of Thailand to deal in digital assets. The subsidiaries parent company is then responsible to ensure the organization follows anti-money laundering (AML) and combating financing of terrorism (CFT) guidelines.
While financial institutions in Thailand can currently issue or invest in cryptocurrencies for ‘development of improvement’ purposes, they cannot issue cryptocurrency or provide services for buying or selling them. Additionally, they are prevented from providing financial advice regarding digital assets to any non-accredited investor.
Earlier this year, Thailand issued a regulatory framework that defines cryptocurrencies as ‘digital tokens’ overseen by the Thai SEC. Last month the southeast Asian nation further opened its markets to cryptocurrencies by creating a fully-regulated ecosystem for ICO’s.
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