Thailand’s financial institutions including the commercial banks can now engage in cryptocurrency activities, central bank of the country recently announced. On August 1, the Bank of Thailand (BOT), issued a circular to all financial institutions to inform them about the new crypto policies. It will allow them to invest, issue, and sell cryptocurrencies.
BOT mentioned the new framework for cryptos and mentioned that it cancelled its previous circular that was issued in February. The previous circular asked the financial institutions to stay away from crypto activities.
According to the new circular, Bank of Thailand provides the conditions under the financial institutions of the country and their subsidiaries can engage in crypto activities, Bitcoin.com reported.
Crypto rules for subsidiaries
The rules for financial institutions and subsidiaries are little different. According to the rule, new subsidiaries who want to engage in crypto activities, should apply for approval from the Bank of Thailand and that is to be done through their parent companies. It will be the responsibility of the crypto company to go through the overall risks related to the proposed crypto activity.
According to the central, it’s also the duty of the parent company to keep a check of whether the subsidiaries are following the guidelines or not. The guidelines include anti-money laundering (AML), IT security, combating the financing of terrorism (CFT) and consumer protection.
Crpto rules for financial institutions
According to BOT, they cannot issue cryptos or provide any service selling them. They also cannot invest in digital assets which includes “both tokens and cryptocurrencies,” the BOT specifies. However, there are reports that the financial institutions can issue or invest in digital assets or cryptocurrencies for developing or improving purpose.
They also must not engage in crypto businesses, including as exchanges, brokers, or dealers. Lastly, they cannot solicit or give advice on crypto investments to anyone that is not an institutional or accredited investor as defined by the SEC.
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