Bank of Thailand denies Bitcoin as being a fiat currency

Thursday 20 March 2014 10:54 CET | News

The Bank of Thailand has recently announced that Bitcoin, along with other crypto-currencies, is electronic data and, as such, it cannot be considered a currency, cannot be used for payments and it is not considered legal tender like money, reports.

In February 2014, the Bank of Thailand claimed that Bitcoin is legal tender and allowed exchange site to resume operations after it had initially been forced to shut down in August 2013 because the financial institution had ruled that the using and trading of crypto-currencies had been illegal.

The exchange has been offered a letter from the Bank of Thailand informing that Bitcoin-based exchange operations do not fall under the scope of Finance Ministry regulations, unless foreign currencies are also offered for exchange. only offers Bitcoin trading for baht and operates solely within Thailand.

The Bank of Thailand arguments its wavering decisions in relation to the crypto-currency’s status as a legal tender by pointing to the Mt Gox incident. Moreover, Bank of Thailand has made it clear that, in case of theft, loss of value or fraud, Thai people cannot claim damages because there’s no law to regulate Bitcoin in Thailand.

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Keywords: Bank of Thailand, Bitcoin, crypto-currency, online payments, legal tender, money
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce