Thailand wants to increase competition and economic growth by introducing virtual banks. The Bank of Thailand has announced intentions to let virtual banks operate for the first time in Thailand. By 2025, financial institutions will be able to offer services, according to a Bloomberg article.
Applications to operate as financial services providers will be made available later in 2023, according to the central bank's "Consultation Paper on Virtual Bank Licensing Framework." The goal of the action is to intensify competition while accelerating Thailand's economic development.
By 2024, the Bank of Thailand will grant interested businesses access to three separate licenses. According to the study, at least ten parties are interested in issuing licenses.
Under the licensing system, virtual banks will be subject to the same rules and oversight as conventional commercial banks. Additionally, qualifying candidates will need to fulfill a number of prerequisites. The central bank added the following:
By making imprudent loans, giving linked parties special treatment, or abusing their dominating market positions, virtual banks run the risk of endangering the financial system, depositors, and customers in general.
The central bank asserts that during the first years of operation, virtual banks would operate in a "limited phase," which entails careful supervision to guard against financial systemic concerns. To increase investor safety, Thailand's Securities and Exchange Commission has announced measures to tighten regulations for cryptocurrencies. Additionally, the authority is creating a stringent set of regulations for cryptocurrency advertisements.
According to Cointelegraph, Thailand and Hungary have signed a technical cooperation agreement to boost the implementation of blockchain technology. This comes as demand for mobile payments, e-commerce, and cryptocurrencies in the nation is rapidly increasing.
In 2022, the nation had a variety of cryptocurrency-related developments, including proposals to test a central bank digital currency with about 10,000 users. According to analytics firm Chainalysis' Global Crypto Adoption Index, Thailand is placed eight.
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