FRIDAY, March 29, 2024
nationthailand

Investors warned of law violation in bitcoin trading

Investors warned of law violation in bitcoin trading

THE FINANCE Ministry has issued a public warning on trading of digital currencies that may violate the Anti-Fraudulent Loans of Money Law due to the growing popularity of bitcoin and other digital units among ill-informed investors and speculators.

In a statement, the ministry |said current activities related |to the trading and investment of |crypto-currencies may create a mis-understanding among the |general public that these digital tokens are legal tender which is |not the case.
In fact, bitcoin and similar units are not legal tenders as defined by the Bank of Thailand and its related law, but they are just electronic files which are not sanctioned by Thai law as a unit of currency like the baht.
Second, the value of these digital tokens are governed by the demand and supply of these units which however have neither underlying assets nor businesses to generate revenues to pay back their owners.

Upsurge 
Third, the upsurge of these units' value has recently attracted more people to trade these units on the assumption that their value will further rise and generate profits for investors.
Fourth, the Anti-Fraudulent Loans of Money Law states that anyone advertise and solicit people to invest in any scheme that promises bogus profits without any underlying assets and businesses are subject to punishable with jail terms of up to 10 years and fines of up to Bt1 million.
The ministry also said the Bank of Thailand, Securities and Exchange Commission and other relevant agencies are working on additional measures to tackle the problems which may arise from the abuse of these digital currencies and illegal money schemes.
 

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