For the past year, many in the blockchain sector have predicted that Thailand will become Southeast Asia’s crypto powerhouse, similar to what the United Kingdom has done in Europe.
Big Thai corporations have recently been pouring money into Bitcoin mining as the country’s cryptocurrency boom grew, despite central bank warnings about danger and instability. Following backlash from the crypto industry, the government abandoned its planned 15% withholding tax on cryptocurrency.
We also saw a significant collaboration between Chulalongkorn University and the Tezos blockchain network, which resulted in the country’s first blockchain teaching and research program.
From huge crypto enterprises to the government, all of the news and events coming out of Thailand suggested that Bangkok was on its way to become the region’s crypto powerhouse. Then, all of a sudden, some investors were startled by some very important news from its authorities.
Despite the fact that Thailand has the highest proportion of cryptocurrency owners in the world (20.1 percent of Thais aged 16-64), the country’s regulator, the Securities and Exchange Commission, has announced that cryptocurrency payments for goods and services will be prohibited beginning April 1st.
According to Thailand’s Securities and Exchange Commission, the prohibition is aimed to prevent financial instability. Another source of concern was the threat of cyber-theft.
The good news is that crypto companies now know exactly what they can and cannot do in Thailand. This is crucial: when regulations are clear, crypto platforms can avoid risk and concentrate on innovation.
Thailand’s burgeoning blockchain and cryptocurrency industries are unlikely to be affected by the ban on crypto payments. There are now a slew of significant crypto platforms recruiting employees and providing trading services to their customers, and this is only the beginning of what is to come.