Bank of Thailand’s New Rules for Digital Asset Businesses and Related Transactions for Banks and Financial Groups

1. Background and Rationale

The Thai financial market has been revolutionized by rapid changes in technology, particularly, with the advent of distributed ledger technology (“DLT”) and digital assets in recent years. This has led to a surge of interest from traditional investors and corporate entities, both small and large, eager to participate in this dynamic market. These technologies have been driving financial innovation and progress. However, the Bank of Thailand (“BOT”) has also identified potential risks such as the stability of the financial system from the use of the digital asset as means of payment (“MOP”) for goods and services, cyberattacks, fluctuations in digital asset value and price, and money laundering.

To maintain a balance between the benefits and risks associated with these technologies and to ensure the market can continue to flourish, BOT has…