Asset-backed Stablecoins to be regulated by bank of Thailand this year

Asset-backed Stablecoins to be regulated by bank of Thailand this year

Thailand plans to introduce a series of regulations for stablecoins in 2021, after issuing a warning against a Baht-pegged stablecoin produced by a South-Korea-based firm.

The Bank of Thailand has this week warned its citizens that Thai Baht Digital (THT) a baht-pegged stablecoin issued by Terra, South Korean firm Terra, has no legal protection or assurances and which contravenes Thailand’s currency Act.

The Thailand Central Bank assistant governor Siritida Panomwon NA Ayudhya according to a report published on March, 19 during the Press briefing stated that Bot is looking into views from market participants and regulators before introducing its measures.

Sitirida opined that the plans of the Central Bank of Thailand is to regulate foreign currency backed stablecoins and algorithmic but not Bitcoin (BTC) or Ether (ETH) which are not decentralized  and  the risk of the investors can be weighed by them.

A policy that is in line with measures in Singapore, United Kingdom and Japan, will entail regulations for baht-bakced stablecoins and these will 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 money laundering and settlement risks.

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