The regime of Thailand is preparing a new regulatory framework for cryptocurrencies like Bitcoin (BTC) to minimize risks and improve investor protection.

The Bank of Thailand (BoT) volition release a consultation paper in January that volition define "red lines" for the crypto industry, governor Sethaput Suthiwartnarueput said in a Dec. xiv interview with The Bangkok Post.

"We want to ensure that we strike the right balance betwixt allowing fiscal innovation and managing risks," the official stated. The new rules will provide acceptable safeguards for consumers as "risks are nether-appreciated" currently, Sethaput said.

The primal bank is cooperating with the Thai Securities and Exchange Commission and the finance ministry to point out restrictions specific to the crypto industry. For example, "cryptocurrencies cannot get a means of payment," Sethaput noted.

The governor emphasized that, despite local authorities potentially recognizing digital assets as an investment product, their extreme volatility poses risks to the financial arrangement. Authorities will too collaborate to prefer proper safeguards for hereafter fiscal securities, he added.

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Thailand's plans to enact new rules for cryptocurrencies come up amidst booming local cryptocurrency adoption. According to the report, the turnover at seven locally licensed crypto exchanges surged to 221 billion baht ($6.six billion) in Nov 2022 from xviii billion baht ($538 million) a yr earlier.

In early Dec, the Thai central banking concern warned commercial banks confronting a "straight involvement" in trading cryptocurrencies, citing their high volatility and potential risks.