SEC bans the use of digital assets for payments from April 1

The announcement stated that the SEC had consulted the Bank of Thailand and both saw the need to prohibit the use of digital assets as a medium of exchange.

The announcement explained that the use of digital assets as a medium of exchange would affect the stability of the financial system and the country’s economy.

The use could also pose risks to the people and businesses due to the fluctuating prices and risks from being hacked by cyber thieves, the announcement said. It added that the use of digital assets as a means of payment could also be abused for money laundering.

The SEC invoked all related laws on supervising digital assets operators to prohibit them from using digital assets for purposes other than investment, the announcement added.

The statement said the SEC had resolved during its meeting on March 3 to prohibit the use of digital assets as a means of payment and issued the following guidelines, which have been updated following public hearings from January 25 to February 8:

– Digital assets operators of all types must not provide services or carry out any action to support or promote the use of digital assets as a means of payment for goods or services. For example, the providers cannot launch advertisements or set up any system or tool to facilitate the use of digital assets as a means of payment. They cannot open digital wallets to use digital assets as means of payment either.

– In case the operators find clients of wallets or accounts using a digital asset to pay for goods and services, the operators must take action against the clients and must suspend or cancel the services.

The regulation will take effect from April 1 and the current digital assets operators must take action to have their services comply with the regulation within 30 days.