Thailand’s Central Bank Bans Banks from Dealing with Cryptocurrencies
- Banks can no longer offer their services relating to any cryptocurrency dealings.

The central bank clearly instructs other national banks not to engage in any transaction if it involves: investment or trading in cryptocurrencies for both financial institutions and retail clients, offering cryptocurrency exchanges, or to provide a cryptocurrency Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. Read this Term. It further ordered the banks to deny its customers to use their credit cards to purchase cryptocurrencies. It also barred financial institutions from advising their customers to invest or trade in cryptocurrencies.
Signed by Bank of Thailand Governor Veerathai Santiprabhob, the circular further clarified that the central bank does not recognize cryptocurrencies as legal tender and ordered banks to implement proper KYC and strictly investigate customers' due diligence, and was issued after last Thursday's statement by Thailand’s Finance Minister Apisak Tantivorawong that the regulators cannot stop the use of cryptocurrencies within the country.
Mr. Tantivorawong said: “The government will not ban cryptocurrency trading. A regulatory framework to govern digital currencies will become clearer within a month.
“After a recent discussion, related agencies agreed that regulators cannot stop the use of virtual currencies but will have to regulate and control them in an appropriate manner,” he added.
Moreover, the Finance Minister also indicated that the Bank of Thailand is not the appropriate institution to regulate cryptocurrencies, as it does not recognize cryptocurrencies as legal tender. According to Mr. Tantivorawong, the securities watchdog Thai Securities and Exchange Commission (TSEC) is the appropriate authority to oversee cryptocurrencies in Thailand.
However, with the recent decision taken by the Bank of Thailand, it seems the country is set to put a full ban on digital currencies rather than imposing regulations.
The central bank clearly instructs other national banks not to engage in any transaction if it involves: investment or trading in cryptocurrencies for both financial institutions and retail clients, offering cryptocurrency exchanges, or to provide a cryptocurrency Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. Read this Term. It further ordered the banks to deny its customers to use their credit cards to purchase cryptocurrencies. It also barred financial institutions from advising their customers to invest or trade in cryptocurrencies.
Signed by Bank of Thailand Governor Veerathai Santiprabhob, the circular further clarified that the central bank does not recognize cryptocurrencies as legal tender and ordered banks to implement proper KYC and strictly investigate customers' due diligence, and was issued after last Thursday's statement by Thailand’s Finance Minister Apisak Tantivorawong that the regulators cannot stop the use of cryptocurrencies within the country.
Mr. Tantivorawong said: “The government will not ban cryptocurrency trading. A regulatory framework to govern digital currencies will become clearer within a month.
“After a recent discussion, related agencies agreed that regulators cannot stop the use of virtual currencies but will have to regulate and control them in an appropriate manner,” he added.
Moreover, the Finance Minister also indicated that the Bank of Thailand is not the appropriate institution to regulate cryptocurrencies, as it does not recognize cryptocurrencies as legal tender. According to Mr. Tantivorawong, the securities watchdog Thai Securities and Exchange Commission (TSEC) is the appropriate authority to oversee cryptocurrencies in Thailand.
However, with the recent decision taken by the Bank of Thailand, it seems the country is set to put a full ban on digital currencies rather than imposing regulations.