Bitcoin is a double-edge sword, says Thai Finance Secretary Sujjapongse

Bitcoin is a double-edge sword, says Thai Finance Secretary Sujjapongse

Bank of Thailand and Thailand’s Securities and Exchange Commission (SEC) need to officially warn customers of the risks of investing in cryptocurrencies, the country’s permanent secretary, Ministry of Finance, Somchai Sujjapongse has said.

Sujjapongse believes that there is clear distinction between regulation of bitcoin (BTC) and of Blockchain technology, “It is not correct to consider Blockchain harmful if we do not prefer bitcoin, as Blockchain technology can create benefits. We can reap benefits from using Blockchain technology.”

Several banks in Thailand, just like in other crypto-friendly banking countries across the world, have already begun looking into Blockchain-based technologies for their financial services.

In this regard Bank of Thailand, the SEC, the Ministry of Finance, and the Anti-Money Laundering office has instituted a Committee on cryptocurrencies, report of which is expected be released later in the year.

According to the The Bangkok Post Friday, February 2, 2018, the committee is working to regulate cryptocurrency trading and exchange in the country.

“Allowing Bitcoin transactions to be made without warnings and direction from regulators is not acceptable,” Sujjapongse said

Cointelegraph reports that Thai SEC showed a willingness to support Initial Coin Offerings (ICO) by coming up with regulations for ICOs, as they may fall into the category of securities under Thai law, that was September 2017.

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Thailand isn’t the only country where government agencies are trying to regulate digital coin.

Trading in digital money has always been volatile as ever, but the recent volatility in the markets gives Sujjapongse more worry and believes that Thailand needs to step in in the interest of investors.

In August 2017, Bank of Thailand held a meeting with co-founder of Ethereum, Vitalik Buterin, about the possibility of using Ethereum and other Blockchain services for improving the speed and security of financial transactions.

Three months after, the Bank of Ayudha in Thailand by successfully ran a pilot Blockchain project with IBM that aimed to improve back-office efficiency.

It was a feat!

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