Bank of Thailand Permits Banks to set up Subsidiaries For Cryptos Deals

Many countries around the world are gradually recognizing the need to make regulations that will favor the smooth running of cryptocurrencies within their shores, and tap from the unending benefits.

According to a local news report, the Bank of Thailand (BoT) has set up subsidiaries that will before responsible for cryptocurrency dealings in the country.

The BoT issued a regulatory statement on August 1st informing all banks in Thailand that they can now issue digital tokens, supply crypto products, and other crypto-related services, etc.

Despite this new development, banks in the country are still restricted on conducting cryptocurrency transactions directly with customers in the country, but rather cryptocurrency transactions can be carried out on a business-to-business basis, and can only be done with businesses that are approved by Thailand’s Security and Exchange Commission.

The source further stated that subsidiaries are also prohibited from offering crypto-related services to individuals unless the aim of acquiring digital assets is strictly focused towards “financial innovation,” in such case, that customer could use the BoT’s Regulatory Sandbox.

Earlier this year, the Bank of Thailand also gave a directive restricting banks in the country from participating in cryptocurrency activities such as investing and trading cryptocurrencies, giving cryptocurrency advice to customers, warning that any bank that goes against these rules will face legal actions.

However, in May 2018, the Thai government made a regulation that puts cryptocurrency under the watch of the Thai SEC, stating that cryptocurrencies are “digital assets.”  Also, in July 2018, the Thai government made regulations for ICO which allows it to operate in a regulated environment fully.