The Bank of Thailand has announced plans to permit virtual banks to operate for the first time in Thailand, as reported by Cointelegraph.
According to Cointelegraph, by 2025, financial institutions will be able to offer services, according to a Bloomberg report.
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 different licences. According to the report, at least ten parties are interested in granting permissions, Cointelegraph informed.
“Virtual banks should not initiate a race to the bottom through irresponsible lending, give preferential treatment to related parties, not abuse dominant market position which will pose risks to financial stability, depositors, and consumers as a whole,” the central bank noted.
The central bank asserts that during the first years of operation, virtual banks will operate in a “restricted phase,” which entails close supervision to guard against financial systemic risks, Cointelegraph noted.
To increase investor protection, Thailand’s Securities and Exchange Commission recently announced plans to tighten regulations for cryptocurrencies. Additionally, the authority is creating a strict set of regulations for cryptocurrency advertisements.
In 2022, the nation experienced a number 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 ranked eighth.
(With insights from Cointelegraph)