Topic: [2018-02-27] Another Thai Bank Shuts Down Accounts of Local Crypto Exchange (Read 89 times)

State owned banks definitely, which has already happened, and others will and are supposed to follow. I however don't know within what specific time frame all banks will abide by the firm warning that came from the central bank of Thailand. If we have to believe a yet unconfirmed source, which we unfortunately can't with so much rubbish and fud articles, so take it with a few grains of salt, March 8 of next month will be the day that the new regulatory requirements are known in Thailand. This article should state that this information is coming from an unconfirmed source.... If everything points at fair regulations, banks will likely resume with offering their services to crypto exchanges, so it looks like a temporary halt of business.

Wow, Thai banks are really going hard on those local exchanges. Fortunately, Thai crypto traders still have the option of choosing from various foreign exchanges like Bitflyer and co.

Meanwhile, it's hard to say if all Thai banks will follow suit but that will definitely happen if the government enacts a law forcing the banks to take such actions.

Another major Thai bank is reportedly terminating transactions involving cryptocurrencies through the bank accounts of a local crypto exchange. This decision follows a similar move by another major Thai bank, Bangkok Bank, to terminate the same exchange’s bank accounts.

Also read: Indians Look to Buy Bitcoin Overseas as Regulations Tighten

Second Bank Closes Account of Crypto Exchange
A major Thai financial institution, the state-owned Krungthai Bank, has “shut down crypto trade accounts,” the Bangkok Post reported on Monday. The bank has become the second in Thailand “to terminate transactions involving cryptocurrencies trading with Thai Digital Asset Exchange (TDAX),” a local cryptocurrency exchange.

Another Thai Bank Shuts Down Accounts of Local Crypto ExchangeThe first bank was Bangkok Bank, which decided to terminate TDAX’s accounts with the bank last week. Earlier this month, Thailand’s central bank issued a circular, asking financial institutions to refrain from getting involved in five cryptocurrency activities.

Mr. Somchai Sujjapongse, the permanent secretary of the Finance Ministry and chairman of Krungthai Bank, ordered his bank on Monday “to halt any transactions related to cryptocurrencies with TDAX through the bank’s accounts,” the news outlet elaborated, adding that:

The move followed a Bank of Thailand request that financial institutions cooperate by refraining from making or being involved in cryptocurrency transactions, as the regulatory framework supervising digital currencies remains unclear.

Another Crypto Exchange Affected
Another Thai Bank Shuts Down Accounts of Local Crypto ExchangeTDAX is a privately-owned Thai cryptocurrency exchange. According to the publication, the exchange still has bank accounts with two other financial institutions: Kasikornbank (Kbank) and Siam Commercial Bank (SCB). Last week, Kbank confirmed that it was still providing service to TDAX.

According to the Bangkok Post, a source from another major domestic cryptocurrency exchange, Bx.in.th (BX), revealed that “Bangkok Bank has already terminated the exchange’s account, but did not reveal whether the termination occurred on the same day as TDAX’s termination.” Yuthavithi Rootwararit, founder and CEO of Crypto Trading Co Ltd, said, “BX’s trading volume and value are more than ten times larger than those of TDAX.”

ICOs Postponed
Another Thai Bank Shuts Down Accounts of Local Crypto ExchangeTDAX is also preparing to launch some initial coin offerings (ICOs). However, the regulatory uncertainty has prompted the exchange to announce that its ICO plans are now postponed.

The exchange recently completed an ICO for Jfin coin by J Ventures, a subsidiary of Jay Mart Plc which is listed on the Thai stock exchange. 100 million tokens were sold at the price of 6.60 baht per token. “Jfin coin will not be affected [by TDAX’s ICO decision], as this ICO was fully subscribed to on Feb 16, while the first trading day will be held on April 2,” Mr. Poramin Insom, TDAX’s CEO and founder, was quoted by the news outlet. He added:

Although there are five or six ICOs in the pipeline, the exchange has decided to impose a two-week postponement because market participants expect the SEC to unveil its ICO regulatory framework soon…We are waiting for the ICO regulations from the [Thai] SEC.

The Thai government is in the process of establishing a regulatory framework for cryptocurrencies, which is expected “on March 8, followed by a fintech bill,” the Bangkok Post wrote. A source told the news outlet that the “ICO regulations are focused on supervising online exchanges, which will have to register themselves with the SEC.”

Do you think all banks in Thailand will follow suit? Let us know in the comments section below.

https://news.bitcoin.com/thai-bank-shuts-down-accounts-crypto-exchange/