A look at the cryptocurrency issue from a Thai perspective

The Thai Ministry of Finance announced the need to create programs to train the population to invest in cryptocurrencies. Prime Minister Prayut Chan-ocha made this decision in connection with the recent fluctuations of Bitcoin (a jump to 20,000 and a drawdown to 12,000 USD).

The ministry’s concern about the current situation in the cryptocurrency market is very understandable. After all, it tends to view trading on crypto exchanges by analogy with the risky investments of citizens in financial pyramids and therefore considers it its duty to explain to people all the complexities of business in this market. However, despite the risks, the government did not take the path of bans or regulation of the cryptocurrency market. And the governor of the Central Bank of Thailand, Virathai Santiprabhob, said that although cryptocurrencies are not legal tender, it is nevertheless necessary to explain to the population the rules of bitcoin trading.

The Thai government’s approach to the world of cryptocurrencies can be called balanced compared to most Asian countries, and educating interested residents of the country will help create a community of experienced investors and progressive-minded users in the state.

Recall that Thailand became the first country in the world to officially prohibiting transactions with bitcoin. This decision was made by the Central Bank in July 2013. Its board of governors has not figured out how to regulate the market for this currency and control its interstate movements. The Central Bank sent an official notice to the only exchange in the country about its violation of local laws. Following a subsequent meeting with officials, the exchange administration decided to suspend its work. Then many were outraged why the Central Bank allowed itself to ban the work of someone, while it was not vested with such powers.

In January 2014, the country's authorities changed their emphasis and the Central Bank of Thailand published a statement in which it indicated that bitcoin and other cryptocurrencies do not fall under its jurisdiction. Taking into account the fact that they have not been recognized as foreign currencies, neither the Central Bank nor the Ministry of Finance can regulate them. That is, having abandoned the position of strict prohibitions, the authorities took the position of observers. Companies working with bitcoin, after this statement, were able to carry out their business and even obtain licenses, although the ban is still officially in force in the country.

Today's news makes us understand that the Thai authorities have changed their view on the problem of cryptocurrency, and the situation has turned 180 degrees. It is still unclear in what direction it will develop further.

According to dailybit.io