Thailand will prohibit the use of cryptos to pay for products and services, claiming that broad use would jeopardise the country's financial system and economy.
The Thai regulator stated in an announcement on Wednesday that businesses, including cryptocurrency exchanges, are prohibited from accepting payments in cryptocurrencies to pay for goods and services.
The announcement further clarified that the prohibition on the use of cryptos for payments would be effective from April 1.
The new regulations prohibit crypto asset service providers from advertising, soliciting, or building systems for paying for goods and services using cryptocureencies and if customers persist, their accounts would be deleted in retaliation.
The regulator justifies this move by stating that any price unit other than the Thai baht increases the cost of economic activity and impairs the transmission of monetary policy. The Bank of Thailand has declared that in the event of a liquidity crisis, it will be unable to support various financial institutions in currencies other than the Thai baht.
Despite the new negative stance of crypto payments, Thailand has been trying to amp up the country's position as a hub for Web3. Earlier this month the country eased its taxation laws on crypto to promote the use of crypto assets and attract businesses to set shops in Thailand.
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