The Bank of Thailand has stated that it does not want commercial banks to be directly involved in the trading of crypto assets.
The edict came from central bank senior director Chayawadee Chai-Anant on Dec. 7 who cited risks associated with high price volatility.
“We don’t want banks to be directly involved in digital asset trading because banks are (responsible) for customer deposits and the public and there is risk.”
The latest round of central bank suppression of digital assets comes at a time when commercial banks have been making investments in local cryptocurrency exchanges, according to a Bangkok Post report.
In early November, Thailand’s oldest bank Siam Commercial Bank (SCB) announced that it was acquiring a 51% stake in the country’s largest crypto exchange, Bitkub. In late August, the Zipmex crypto exchange raised $1.3 billion in funding from the country’s fifth-largest lender, Bank of Ayudhya.
The Bank of Thailand (BoT) has taken an increasingly tougher stance against digital assets despite their growing popularity in the country among individuals, companies, and banks.
Last week, BoT senior director Sakkapop Panyanukul warned businesses about accepting crypto, stating: “If other currencies are widely used, it will impact the central bank’s ability oversee the economy.” Referring to tokens not backed by assets, he labeled them as “blank coins.”
The central bank has also expressed concern over the use of cryptocurrencies to pay for goods and services. In a related report on Dec. 8, Chai-Anant commented that digital assets could be detrimental to merchants…