Continuing its decisive development spree for the optimal growth of the cryptocurrency sector, the Bank of Thailand passed a resolution to allow local banks to set-up cryptocurrency-focused subsidiaries for dealing with related businesses.
As reported by local news outlet Blognone on August 3, Thailand's locally incorporated banks can now provide cryptocurrency brokerage services to their clientele, in addition to investing in digital assets in a personal capacity, issuing tokens and funding cryptocurrency businesses.
Banks are still prohibited to hold or facilitate transactions via cryptocurrencies.
Such subsidiaries are limited to providing their services to firms that utilize blockchain technology and cryptocurrencies in sectors other than finance.
The report mentioned token issuers and digital assets promising financial innovation or augmentation of existing economic frameworks must use the BoT Regulatory Sandbox path instead. The development comes after much redactions from the Thai government and banking authorities.
Earlier in 2018, BoT prohibited all banks and financial institutions from trading and investing in cryptocurrencies.
The circular asked all banks to refrain from providing and advising clients on making investments and trading decisions about cryptocurrencies, in addition to banning the use of credit cards for transacting with crypto-related businesses.
The center soon turned optimistic about the digital asset sector in May 2018, classifying all cryptocurrencies as "Digital tokens" under the regulation of the Thai SEC. Later, in June 2018, the central bank revealed its plans to develop a state-backed cryptocurrency for facilitating interbank settlements and cross-border payments, by way of a Central Bank Digital Currency.
At the time, the bank noted the benefits of using a CBDC, such as reduced transaction times, cutting down payment costs, and reducing fraud due to the elimination of intermediaries in the banking process.
In the same month, governor of the Bank of Thailand, Dr. Veerathai Santiprabhob, alluded to the use of blockchain technology as part of a national effort to further Thailand's economic potential during his speech at the Bloomberg ASEAN Business Summit, as reported by CryptoSlate.
Thailand: Central Bank Allows Institutions to Open Crypto-Specific Subsidiaries
Publicado en Aug 6, 2018
by Cryptoslate | Publicado en Coinage
Coinage
Noticias recientes
Ver todo
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.