New regulatory framework has come into effect by decree in Thailand in regard to cryptocurrencies. Cryptocurrencies such as Bitcoin and altcoins are now defined as digital assets and digital tokens and this means that they are now under the regulatory jurisdiction of the Thai Security Exchange Commission, otherwise known as the SEC. This is indeed a step in the right direction by the Thai government as they look to embrace the use of cryptos.
The cryptocurrency industry has in many ways lacked credibility due to it being very much an underground thing. The new approach by the Thai government however will give it the legitimacy that it seems to have lacked, especially with it now being regulated. This means that ICO tokens, Bitcoin and altcoins will now be more appealing to the general public and they will have more peace of mind when it comes to using cryptos.
For many, the anonymity provided when using cryptocurrencies was the biggest draw but on the flip side of the coin this is one of the reasons as to why many had concerns over its use too. Due to the new framework put in place there will no longer be any anonymous cryptocurrency trading, meaning that the identities of all users will be verified properly. Therefore, there is less chance of criminal activity taking place, making the whole system more trustworthy.
Crime has long been linked with cryptos with tax avoidance, money laundering and fraud believed to be major problems in the usually unregulated world. This had led to a poor reputation on a global scale but now that cryptocurrencies are seen as digital assets and tokens in Thailand; it should help to curb the problems of old. Previously, all cryptos were banned in Thailand but this didn’t eradicate the issues whereas the new regulations are seen as a major step forward.
If unscrupulous individuals or companies still wish to continue to flaunt the rules and engage in illicit behaviour, they will be met with severe punishment for doing so. Token brokers who fail to register with the government could face up to two years in prison as well as a maximum fine of 500,000 baht. Any fraudulent activity taking place will also result in a jail-term, this time up to five years. It’s a sign that the Thai government are taking cryptocurrencies very seriously and are wanting to make it a system that is fair for all of its users.
The general public and indeed the rest of the world will welcome this positive attitude with cryptocurrencies being more and more dominant in the mainstream environment. Testimony to this is the likes of Expedia, Microsoft and i-Pmart already having cryptocurrencies as a method of payment; which is acting as an impetus for more brands from industries like top gaming firm SBObet and world renowned retail brand Amazon to serious look at implementing the option.
Anyone who is using cryptocurrencies can really benefit when they stick to the basic rules set out. This will be music to the ears of those who have been trading or using Bitcoin as a payment method for example, and there will be real peace of mind provided knowing that cyber crooks who use these networks due to the anonymity on offer will no longer be able to operate above the law. This really is a step in the right direction.