October 25, 2021

Bank of Thailand plans to regulate asset-backed stablecoins this year

1200 aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDMvNzM2NDA0YTktOWE2YS00MzVjLWJkZGUtOGY5YzlmYjBkZTgwLmpwZw

The Bank of Thailand, or BoT, is upping its game on the stablecoin front. This week, the institution had warned citizens that Thai Baht Digital (THT), a baht-pegged stablecoin issued by the South Korean firm Terra, has no legal assurances or protection and violates the country’s currency act.

According to a report published on March 19, central bank assistant governor Siritida Panomwon Na Ayudhya has told a briefing that the BoT is taking into consideration opinions from market regulators and participants before introducing its measures.

The plans are to regulate asset- and foreign currency-backed stablecoins and algorithmic stablecoins, but not decentralized cryptocurrencies such as Bitcoin (BTC) or Ether (ETH). For these latter, the BoT states that investors can weigh their own risks, according to Siritida.

Regulations for baht-backed stablecoins will reportedly follow a policy roughly in line with measures in Singapore,  Japan and the United Kingdom. These would include a requirement to receive official approval from the BoT and their possible classification as e-money. The classification would make them subject to central bank oversight when it comes to moneyTitle: Bank of Thailand plans to regulate asset-backed stablecoins this year
Sourced From: cointelegraph.com/news/bank-of-thailand-plans-to-regulate-asset-backed-stablecoins-this-year
Published Date: Fri, 19 Mar 2021 12:00:53 +0000