Bank of Thailand Gives Green Light For Local Banks to Open Crypto Services and Businesses
According to the local news Blognone which was published on August 3, 2018, stated that now the banks are showing their interest towards cryptocurrencies and are adopting the blockchain technology slowly. The Bank of Thailand (BOT) has recently given permission to the local banks to set up subsidiaries for dealing of cryptocurrencies.
It was when a regulatory announcement published by the BOT on 1st August that local banks can participate in the crypto market by issuing the digital tokens, providing the crypto brokerage services, business related to crypto, and also investments in cryptocurrencies via subsidiaries.
Earlier The Regulatory Body Has Banned The Banks And Other Financial Institutions
In one of the announcements that have been made by the authority, it has been cleared that all the banks and other financial institutions are banned and cannot be directly involved in dealing with the cryptocurrencies.
Banks have been told not to allow any branches that deal with cryptocurrencies. It means that they will not be giving any services to the general public or customers related to crypto. They have to maintain their policy and stick to a guideline that they have to do the businesses which are approved by the (Thai SEC) Thailand’s Securities and Exchanges Commissions and also (OIC) Office of Insurance Commission. The earlier subsidiaries that were allowed has also been banned to the public for dealing in any crypto-related services.
The Subsidiaries Info
The Subsidiaries aim was to provide investment resources to the public or the general customers if they want to invest in digital assets. Overall it helps in the development of Financial Innovation and to reach out the quality of the services using BOT.
Ban is over!
In the recent news, the ban which was there on banks to deal with the cryptocurrencies has now legalized which is a great news for all the citizens of Thailand. Earlier the ban was there due to it they were not been able to invest or trade in crypto exchanges. The Central bank also opposed earlier not to make any investment in the crypto market and has specifically told public not to use their credit cards for any crypto-exchanges.
In May, finally, the government has made a regulatory law and set up a framework that keeps a check on the cryptocurrencies. Also introduces digital assets and digital tokens and it falls under Thai regulation.
BOT’s new innovation
This year on June, Bot is thinking of an innovation where its focus is on settling interbank by using Central bank issued digital currency i.e. (CBDC).
The innovation can cut down the cost of transactions and also reduce the validation time for transactions. This will happen due to as there is less intermediation involved if we compare to the current systems.
This year July, the Thai government has taken a big step where they regulated the ICO (initial Coin Offerings) thus becoming the first jurisdictions in the world for letting the ICO operate fully in the open environment.