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Thailand Bans Banks from Operating with Cryptocurrencies Until New Regulations Are Approved

Thailand has been taking important measures to regulate the cryptocurrency market. This time, the central bank has issued an order that orders banks and other financial organizations to stop all operations with digital currencies. According to a local news source, banks are not able to invest in cryptocurrencies, selling them or having any relations with the cryptocurrency market.

Thailand Bans Banks from the Cryptocurrency Market

Thailand has decided to go one step further in its war against cryptocurrencies. The central bank has prohibited financial institutions from performing any cryptocurrency-related activity. Thai banks are not able to give loans or recommend clients to use cryptocurrencies as investment tools.

Thailand
Thailand

The central bank claims that cryptocurrencies can be used by criminals, for money laundering activities, and for financing terrorism. With this argument, all the banks are now unable to take part in the digital currency market.

According to different authorities, there is not an intention to ban cryptocurrency trading. The government is going to set up a regulatory framework within a month. Besides that, Thai authorities believe that regulators are not able to stop the use of cryptocurrencies but they need to regulate illegal activities.

Finance Minister Apisaj Tantivorawong said about that:

“The government will not ban cryptocurrency trading. A regulatory framework to govern digital currencies will become clearer within a month. After a recent discussion, related agencies agreed that regulators cannot stop the use of virtual currencies but will have to regulate and control them in an appropriate manner.”

Singapore Open Policy

Other countries like Singapore are taking different measures against criminal activities around cryptocurrencies. The central bank of Singapore has confirmed that they do not try to regulate cryptocurrencies. Instead, the authorities make a clear distinction between illegal activities and cryptocurrencies.

“The cryptocurrency itself (Bitcoin) does not pose the kind of risk that require regulation,” said Ravi Menon, the head of the Monetary authority of Singapore. “Our intention is to look at the activity around the cryptocurrency and then make an assessment about which regulation would be suitable.”

Credit Cards Not Allowed

Some days ago we wrote at LetsEarnBTC that some banks in the United States and the United Kingdom have decided not to accept credit card transactions to buy cryptocurrencies. Lloyds Bank, bank of Scotland, Halifax and MBNA do not accept credit card transactions from their clients to purchase cryptocurrencies.

In the United States, banks like JP Morgan or Barclays will stop customers from buying cryptocurrencies with credit cards.

“We are making the decision that we will likely not allow cryptocurrency purchases on the card,” commented Paul Wilmore, managing director at Barclaycard.

Barclaycard is one of the most important card providers in the United States and Britain and Lloyds has issued over a quarter of all credit cards in Britain. The clients will be able to purchase cryptocurrencies using debit cards or bank transfers. According to the banks, the intention is to reduce the risk associated with credit card purchases in case the cryptocurrency market plummets.