Thailand’s central bank has announced the rules under which financial institutions, including commercial banks, and their subsidiaries can engage in cryptocurrency activities. They include securities, asset management, and insurance firms. This follows the country’s crypto regulatory framework that went into effect last month.
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New Circular, New Rules
Thailand’s central bank, the Bank of Thailand (BOT), issued a circular dated August 1 to all financial institutions in the country, informing them of its new crypto policies.
Part of the Bank of Thailand’s August 1 circular.
Citing that the country now has a regulatory framework for cryptocurrencies and initial coin offerings (ICO), the BOT canceled its previous circular issued in February. At that time, the central bank asked financial institutions to refrain from getting involved in certain types of crypto activities.
In its new circular, the Bank of Thailand outlines the conditions under which financial institutions and their subsidiaries can now engage in activities involving cryptocurrencies and digital tokens.
The rules can be divided into two broad categories: those that apply to financial institutions and those that apply to their subsidiaries.
Rules for Subsidiaries
Within a financial institution’s group of companies, there are usually subsidiaries offering financial products and services such as brokerage, asset management, insurance, and life insurance. These companies have their own regulatory bodies. For example, brokerage firms comply with the Thai Securities and Exchange Commission (SEC) whereas insurance firms comply with the Thai Office of Insurance Commission (OIC).
The BOT says these companies are now permitted to engage in crypto businesses including issuing digital tokens and investing in cryptocurrencies, providing they follow the rules set by their respective regulators.
New subsidiaries wanting to engage
