Thai central bank prohibits financial institutions from trading in cryptocurrencies

Physical representation of Bitcoin digital currency.

Thailand’s central bank said on Monday it had asked financial institutions not to get involved in cryptocurrency transactions for fear of possible problems from the unregulated trading.

Banks are prohibited from investing or trading in cryptocurrency, offering cryptocurrency exchanges and creating platforms for cryptocurrency trading, the central bank’s governor, Veerathai Santiprabhob, said in a circular.

They are also banned from allowing clients to use credit cards to buy cryptocurrency, and from advising customers on investing or trading in cryptocurrency, the bank said.

The central bank said cryptocurrencies were not legal tender in Thailand and it was worried that they may be used in illegal activities such as money laundering or supporting terrorism.

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Reuters