Bank of Thailand to Regulate Stablecoin Ahead of Digital Currencies

Bank of Thailand to Regulate Stablecoin Ahead of Digital Currencies

The central bank of Thailand will be regulating stablecoin very soon this year. Siritida Panomwon Na Ayudhya, Assistant Governor to the Bank of Thailand, revealed this Friday that the upcoming regulations will only cover stablecoin. This means that the new regulations will not be covering any digital currencies, like Bitcoin, Ethereum, Litecoin, and others.

Although Na Ayudhya revealed that the central bank is yet to officially announce this, because. as she says, “The central bank is receiving opinions from market regulators and participants before announcing regulations”.

The new plans will not only cover Thai-backed stablecoins, but those that are also backed by foreign currencies outside of the country. Baht-denominated stablecoins will become categorized as electronic money, or e-Money, with issuers needing the permission of the bank. All this is yet to come into effect though.

Currently, there are no widely known Baht-denominated stablecoins, however, Thai crypto exchanges will be heavily relying on USD-backed stablecoins. The trading experience with USD-backed stablecoin is similar to that of Baht-denominated stablecoins, because the former ones will help international and offshore exchanges bypass regulations.

Siritida Panomwon Na Ayudhya also wanted to point out that these new regulations will closely mirror the ones already is used by regulators in Singapore, Japan, and Britain.
Meanwhile, the Thai monetary regulator blacklisted the local Thai Baht Digital (THT), a baht-denominated stablecoin, warning users against using it.

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