According to the translate by Reuters, The Bank of Thailand warned financial institutions not to get involved in cryptocurrency transactions for fear of possible problems from the unregulated trading.
The central bank’s governor Wisit Santiprabop signed the circular which outlines five key cryptocurrency activities banksa re banned from:
- Investing in cryptocurrency
- Trading in cryptocurrency
- Exchanging cryptocurrency
- Creating platforms for cryptocurrency
- Advising customers on cryptocurrency investing or trading
As the bank also stated, the cyrptocurrencies are not legal tender in Thailand. It was actually worried that they may be used in illegal activities such as money laundering or supporting terrorism. However, also the Thai government announced that it will not ban cryptocurrencies and is developing a regulatory framework for them.
Recently, the banks in the US and the UK have also banned their credit card customers from buying cryptocurrencies.