TL; DR Breakdown
- Bank of Thailand bans commercial banks from crypto trading
- An official of the bank cited price volatility
- Thailand’s tourism industry encourages crypto holders to visit
Trading digital currency is very rewarding, and that is if a trader knows what he is doing in the market. Despite that, the market has been targeted by several evil users, pushing countries to regulate the sector or ban it outrightly. In the latest update, the Bank of Thailand has announced that it has barred all commercial banks in the country from providing crypto trading services.
Bank of Thailand official cited price volatility concerns
The statement was released yesterday through one of the top members of the Bank of Thailand, Chayawadee Chai-Anant. In his statement, the executives talked about a series of issues associated with trading crypto but rested majorly on price volatility. Since banks have a moral obligation to hold cash for clients, they should be nowhere near cryptocurrencies.
This latest statement is coming off the back of several key partnerships between commercial banks and crypto exchanges across the country. Last month, Bitkub announced that it had concluded details and has inked a partnership deal with Siam Commercial Bank. Another crypto exchange announced in August that it had completed a massive funding round.
The funding round was led by the Bank of Ayudhya and saw the exchange raise $1.3 billion. The Bank of Thailand has continued to be unmoved in its clamor against digital assets, although most people in the country are moving to it. Another senior member of the Bank of Thailand, Sakkapop Panyanukul, advised businesses about the risks of operating with digital assets.
Thailand’s tourism industry continues to invite crypto holders
The Bank of Thailand has in previous times talked about some of the disadvantages of using digital assets as payments for goods and services bought. Chai-Anant believes that people need to abandon digital assets completely. He listed several risks associated with holding and using them, including theft, price spikes, money laundering, and theft of personal data.
He opined that the massive usage could eliminate stability in any system and risk consumer protection. This recent warning was released after Thailand announced that it had completed preparations to receive crypto-rich visitors into the country. Although the Tourism industry wants people to bring their crypto in, the Bank of Thailand wants them to be alert. Thailand holds its tourism sector in high regard as it is one of the most income-generating sectors.
The effects of the coronavirus pandemic have caused a stop in income generation from this sector for a while. Although crypto holders have been encouraged to visit, the country has continued to record a low turnout of visitors.