How Will Cryptocurrency Legislation Benefit Thailand?
A new law has been put in place in Thailand recently in order to regulate and control the use of cryptocurrency and initial coin offerings, otherwise known as ICOs, in the country. A royal decree has seen cryptos defined as digital assets and digital tokens, thus bringing them under the regulatory jurisdiction of the Thai Security exchange. The move will now require crypto brokers and dealers to register with the relevant authorities or they will face prosecution.
So, one of the first benefits is that the whole cryptocurrency industry is going to be seen as a lot more credible and legitimate due to the new regulations that have been put in place. The people of Thailand should see ICO tokens, Bitcoin and altcoins in a different light and this will be an important step forward for the industry. While it may in some ways be a step into the unknown, it is a positive move for everyone involved.
One thing associated with cryptocurrencies is the fact that they provide anonymity to their users. This has been a huge draw in many respects, but it has also put many off too due to not knowing who they are dealing with. Anonymous cryptocurrency trading is now a thing of the past as all users must now be verified thoroughly and legally, giving proceedings a whole new level of transparency.
You could say that the main reasons as to why cryptos have now been classed as digital assets is to stop crime, money laundering and tax avoidance taking place. While there are many benefits to using cryptocurrencies, there are also perceived downsides too with one being that there are loopholes that are regularly exploited by online crooks. In the past it had been a case of the Bank of Thailand banning cryptocurrencies in an attempt to stop criminal activity taking place, but that decision has been revoked.
With this in mind, the new royal decree has declared severe punishments will be handed out to anyone and everyone who is taking part in illegal activities through the use of cryptocurrencies. Token brokers for example must register themselves with the government or they could face a jail sentence of up to two years. There would also be fines issued that would be at least double the value of the tokens in question, with a maximum fine in place of 500,000 baht.
This all goes to show just how seriously the Thai government are taking cryptocurrencies right now. They want local residents to be able to use them, but only if they are doing so for the right reasons. The fact that anyone caught conducting any form of illicit behaviour through the use of ICO tokens, Bitcoin or altcoins is severely punished should help the industry to grow. More people will see cryptos as credible and as a result, it will be embraced by the mainstream businesses and the general public; with cyber criminals more likely to avoid using them in fear of being handed a prison sentence or a fine. In the online world this is already happening in industries like online gaming, where an increasing number of established operators such as SBObet are seeing the value of having the payment option.