Bank of Thailand to allow first virtual banks by 2025

Bank of Thailand (BOT) has disclosed plans to let virtual banks to run successful the state for the archetypal time. Financial firms volition beryllium capable to supply services by 2025, a Bloomberg study shows. 

The ‘Consultation Paper connected Virtual Bank Licensing Framework’ has been published by the cardinal bank, and applications shall beryllium disposable aboriginal successful 2023, allowing virtual banks to enactment arsenic fiscal services providers. The determination focuses connected boosting contention and Thailand's economical growth.

The BOT volition contented 3 antithetic licenses for funny companies by 2024. There are astatine slightest 10 parties funny successful granting permissions, the study states.

Regulations and supervision for virtual banks volition beryllium the aforesaid arsenic those for accepted commercialized banks nether the licensing framework. Moreover, qualified applicants volition request to conscionable definite requirements. The country's cardinal slope besides noted:

"Virtual banks should not initiate a contention to the bottommost done irresponsible lending, springiness preferential attraction to related parties, nor maltreatment ascendant marketplace presumption which volition airs risks to fiscal stability, depositors, and consumers arsenic a whole."

According to the cardinal bank, virtual banks volition beryllium nether a "restricted phase" during their archetypal years of operation, which includes adjacent monitoring to forestall fiscal systemic risks. Thailand's Security and Exchange Commission precocious announced plans to tighten rules for crypto, aiming to grow capitalist protection. A strict acceptable of guidelines for crypto ads is besides being developed by the authority.

Thailand precocious entered into a exertion practice statement with Hungary to enactment the adoption of blockchain technology, amid a accelerated maturation of request for mobile payments, e-commerce, and cryptocurrencies successful the country, Cointelegraph reported.

The state has seen a fig of crypto-related developments successful 2022, including plans to aviator a cardinal slope integer currency (CBDC) for astir 10,000 users. Thailand is ranked eighth connected the Global Crypto Adoption Index by analytics institution Chainalysis.