The Central Bank of Thailand (BOT) has published the schedule of participation in activities associated with cryptocurrencies. The rules, spelled out in the document relate to commercial banks and their subsidiaries: investment brokerage and insurance companies as well as asset management.
The regulations were sent to all national financial institutions on August 1. First Bank said that because the country’s laws now provide for the ICO and cryptocurrencies, the February circular, limiting participation in the digital economy, is ineffective. In General, the text of the document can be divided into two main sections: the legal foundations of work organizations and the legal framework of their branches and subsidiaries.
Based on the fact that the cryptocurrency industry is still being formed, we have identified four areas in which banks are prohibited to work with cryptocurrencies because of the potential risks for consumers and the economy as a whole. First, banks are unable to produce and sell digital tokens. Second, they can invest in digital assets (including tokens and cryptocurrencies). Thirdly, banks are required to refrain from participating in any cryptocurrency enterprises (exchanges, brokers, dealers, etc.), and finally to provide legal or Advisory services to individual investors, without special permission of the Commission on securities and stock exchanges of Thailand. However, local newspaper Krungthep Turakij reported that the issue of tokens or investing in cryptocurrencies will be considered lawful if the financial institution uses virtual assets to improve the quality of service — but only within a specially created “sandbox”.
In turn, the rules for the subsidiary companies of banks less strict. They can act as issuers of digital assets, and to invest freely in the digital economy — subject to full compliance with the requirements of Supervisory authorities. Any subsidiary or affiliate shall provisionally apply to the Central Bank through the parent company. Head of the enterprise taking responsibility for the management of relevant risks and for compliance with information security standards and consumer protection and legislation in the field of combating terrorism and money laundering.
Recall that the legal standards for the ICO to operate in Thailand from July 16. At the time of announcement of the introduction of the regulations the authorities have already approved seven projects.
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