Thailand's Central Bank Bans Certain Cryptocurrency Activities

Thailand has been one of the countries that has rarely gotten attention for its decisions related to cryptocurrencies. Now, it seems that the central bank of the country has taken an importance stance against cryptocurrencies.

Bank of Thailand bans financial institutions from conducting five cryptocurrency related activities

The Bank of Thailand has banned the financial institutions functioning in the country from conducting five activities related to cryptocurrencies. Among these activities is allegedly included buying cryptocurrencies with credit cards. The move to ban such purchases is not new. Some banks in the US, UK and most recently Australia have announced their decisions to ban cryptocurrency purchases with the use of credit cards.

The Bank of Thailand, the country's central bank, seems to demand the same from financial institutions working in Thailand, with the purpose to avoid potential problems that may rise from the fact that cryptocurrencies are linked to unregulated trading. Thus, the Bank of Thailand has asked financial institutions to not get involved in cryptocurrency transactions.

The announcement was made by the central bank's governor, Veerathai Santiprabhob, in a circular. The circular indicated that financial institutions will no longer be able to invest or trade in cryptocurrencies.

At the same time, banks cannot offer cryptocurrency exchanges or create platforms for trading of digital currencies. The circular also indicated that financial institutions cannot allow clients to use credit cards to purchase cryptocurrencies.

Banks will also be prohibited from offering advice to their customers on whether to invest or trade in digital currencies. The reason why the central bank took this decision, which is definitely not a very positive one from the perspective of those interested in buying or trading in cryptocurrencies, is linked to the fact that digital currencies are not legal tender in the country. Of course, this might mean that the potential to be linked to illegal activities is quite high.