The new rule for trading cryptocurrencies was made known through a circular passed by the Bank of Thailand (BOT). This new circular does not change the previous rule of the ban placed on banks to trade cryptocurrencies.
The New Circular of Bank of Thailand
Banks in Thailand can now issue, sell and invest in cryptocurrency through subsidiaries, as noted in a circular passed by the Bank of Thailand recently. However, this new circular does not replace the ban on banks on trading cryptocurrencies since February of this year.
This means that the banks in Thailand can do business with digital tokens and requires that those that are in the digital asset can provide a digital token offering system and also invest in the asset.
According to the document, it means that the banks can be involved in cryptocurrency trading and transaction through subsidiaries immediately or by taking permission from the bank of Thailand before getting involved. However, the previous ban on cryptocurrency to not be issued, sold and invested in still stands. This means the bank cannot make any form of cryptocurrency transaction for their customers.
What Trading Cryptocurrency through Subsidiaries Means and its impact
Even though the previous ban stands, it still an opportunity for banks to get associated with cryptocurrencies in a modified way but not directly. This means that banks and the financial institution can offer ICO, ICO portal, invest and trade cryptocurrency, and engage in related businesses in a fraction of a broker, dealer, and exchanges.
The banks can get involved by recommending investment advise sources for customers. Investment in ICOs can only be made through the regulatory sandbox, by investing in digital assets towards financial innovation.
In banks relationship with cryptocurrency, the usage of credit card or debit card to male purchase is not permitted, and they must strictly adhere to the financial risk management involved in investing through subsidiaries. The details of the circular were sent to the executive of every bank in the country.
The new development seems like a change from the ban place on banks not to relate with cryptocurrency in February as directed by the central bank governor of Thailand, Veerathai Santiprabhob. Nevertheless, it means positive for the former gloom on cryptocurrency in the country. As this has stimulated elation alike amidst the crypto enthusiasts community.
The new circular is just a testament to the possibility of more freedom and acceptance to be granted to cryptocurrencies in the country. The crypto ecosystem awaits more of this type of decisions in other countries of the world.