The Bank of Thailand or BOT continues to drive competition and economic growth. Preparing to test to allow the use of virtual banks (Virtual Bank) in the country for the first time. by financial company service providers It will be available for servicing by the year 2025.
According to Bloomberg reports, the Bank of Thailand or BOT is issuing advisory notices on virtual bank licensing framework which states that the application will be available by 2023 for the virtual bank to operate as a financial service provider. The move is focused on increasing competition and boosting Thailand’s economic growth.
meanwhile the Bank of Thailand is preparing to issue three initial licenses to interested companies by 2024, with at least 10 applicants already applying for licenses.
While in terms of regulatory regulations for virtual banks, the same as traditional commercial banks under the licensing framework. The requirements specified by the bank must be met.
“Virtual banks should not start with competition. This will pressure the industry and the economy to the bottom with irresponsible lending. including granting special privileges to related persons or abuse of market dominance This poses a risk to financial stability. both depositors and consumers as a whole.” BOT has been identified
However, according to the central bank, the virtual bank will be under a “limited period” during the first year of operation. This includes close monitoring to hedge risks in the financial system, with the Securities and Exchange Commission of Thailand (SEC) recently announcing a plan to tighten regulations for cryptocurrencies. with the aim of expanding investor protection The rigorous guidelines for crypto ads were also developed by the agency.
while recently Cointelegraph reported that Thailand entered into a technology cooperation agreement with Hungary to support the adoption of blockchain technology. Amid the rapid growth in demand for mobile payments, e-commerce and cryptocurrencies in the country.
According to data analytics company Chainalysis, the past year has seen a number of crypto-related developments. Including plans to pilot a central bank cryptocurrency for around 10,000 users, Thailand ranks 8th in the Global Crypto Adoption Index.
