Thai lawmakers have decided to review the nation’s stance on cryptocurrency. The decision was made following several complaints indicating that Thailand’s regulation is lagging behind in the crypto space.
In Thailand, crypto regulation might see an overhaul. This is according to a report by the local English news media Bangkok-Post on November 25, 2019.
This sudden interest in crypto legislation might be spurred on by China’s activities in the space. Thus, Thailand’s financial regulators have stated quite plainly that in 2020 they would be reviewing existing strict digital asset laws.
Speaking on the announcement, Thailand’s SEC Secretary-General, Ruenvadee Suwanmongkol pointed out that the regulators are going all out to keep up with the fast-moving digital trends. She also added that they were doing their best to eliminate all obstacles associated with adjusting the regulation.
Thailand’s stiff regulations
In May 2018, Thailand issued its first royal decree on cryptocurrencies. It classified digital tokens and another form of electronic transaction unit as a single entity. The Thai SEC is the authority in charge of approving the matter.
According to the law, running a crypto firm without proper registration will result in a fine of at least $16,000 alongside a two-year jail term. The law however only listed a few types of digital assets.
The correspondent regulation was quite strict, stifling out the registration process. In essence, only five crypto companies could fulfill the stringent regulations. Also only two out of the five companies have been able to go live. The companies include Satang Pro Corporation and Bitkub Online Co LTD.
Flexibility in crypto regulation is necessary
Suwanmongkol pointed out that the decree is making the country uncompetitive in the crypto space. To advance, crypto laws will have to be flexible. Crypto companies that need licenses will get them easily.
She also added, “There needs to be flexibility in the rules, and this will be in the line of the budget of the market.”
I think China’s interest in the digital asset sphere is keeping most countries on their toes. Most of them are trying to keep up with China’s perceived progress in the crypto space. After all, it is on the brink of launching a CBDC.