The Central Bank of Thailand issued a circular outlining rules for financial companies activities in the field of cryptocurrency.

The document will replace circular, issued by Bank of Thailand (BOT) in February, in which the regulator has asked the financial business to refrain from any activity related to cryptocurrency.

As the country entered into force regulatory rules for the regulation of cryptocurrencies, the Central Bank has now cancelled its ban and informed controlled by the authorities about their policies in this area.

Financial conglomerates, as a rule, there are a significant number of subsidiaries which provide various services, such as brokerage or insurance. Their activities are regulated by the relevant regulators. BOT allowed such firms to engage in transactions with cryptocurrencies, including the issuance of digital tokens and investment in scriptactive, provided that they comply with the rules of their supervisors.

The parent company will be responsible for the control and management of all the risks associated with cryptocurrency activity as a whole group and subsidiaries. The latest if you want to participate in cryptocurrency transactions must receive the approval of the Central Bank by submitting a request through the parent company.

For financial conglomerates, including commercial banks, the BOT has imposed much more stringent requirements, citing the immaturity of the cryptocurrency market and risks to the financial system of the country.

The regulator has identified four areas in which financial companies should not participate. First, we have forbidden them to issue digital tokens and provide services for trade. Second, banks and large financial companies can not invest in digital assets to which the Bank of Thailand took the tokens and cryptocurrencies.

Also they are not allowed to participate directly in the cryptocurrency business, including stock exchanges, brokerage and dealership services. In addition, they must not provide advice on cryptocurrency investment anyone except institutional or accredited by the SEC of Thailand investors.