Financial institutions in Thailand have been hit hard by the country’s central bank after it banned them from getting involved in cryptocurrency transactions. Banks particularly have been prohibited from trading or investing in cryptocurrencies or even offering cryptocurrency exchanges.
The central bank also banned the financial institutions from creating cryptocurrency trading platforms, citing fear of the issues that could arise from the unregulated trading.
According to Veerathai Santiprabhob, the governor of the central bank, banks would also be prohibited from allowing their clients to use credit cards for the purposes of buying cryptocurrencies. The institutions would also not offer any advice on trading or investing in cryptocurrencies.
Cryptocurrencies Aren’t Legal Tender in Thailand
According to the central bank, cryptocurrency dealings aren’t recognized as legal tender in the country. The central financial institution of Thailand does not acknowledge cryptocurrencies, which is why it asks all financial institutions to show due diligence and implement the correct measures to exclude them from their services completely. There are worries that the digital currencies may be used by criminals in illegal activities, including supporting terrorism and money laundering.
Not Much Good News on Cryptocurrencies Lately
Cryptocurrencies have had their share of challenges lately with regulators moving in to either see more regulations imposed or to ban them altogether. Qatar was in the news recently, with its central bank giving a directive that that banks operating in the country would not deal in cryptocurrencies, including Bitcoin.
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Do you think the move by various central banks to ban financial institutions from dealing with cryptocurrency transactions have had an effect on their prices? Is this an ill-informed decision, considering that digital currencies are becoming more popular? Share your thoughts with us today.