Thai Central Bank to Regulate Stablecoins This Year

Thailand’s central bank said it will issue regulations on asset-backed stablecoins this year after warning against the illegal use of a new baht-denominated stablecoin that was created outside the country.

• The bank’s assistant governor said Friday there are plans to regulate asset-backed stablecoins only, not bitcoin, according to a Reuters report.
• “The central bank is receiving opinions from market regulators and participants before announcing regulations,” Siritida Panomwon Na Ayudhya, assistant governor of Payment systems policy and financial technology group, Bank of Thailand, said at a briefing.
• Siritida stressed the new regulations will not cover those cryptocurrencies without asset backing such as bitcoin and ethereum adding that “investors will have to take their own risks.”
• On Wednesday, the Bank of Thailand warned against the use of the Thai baht-denominated stablecoin (THT), labeling it a threat to the stability of the national currency system.
• The bank said the general public needs to exercise caution and refrain from participating in any activity involving THT, alleging users could be at risk of cybertheft and money laundering.
• The baht stablecoin is created on the South Korean stablecoin platform Terra.

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