Thai central bank rules Bitcoin to be illegal

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)

The Thai authorities have ruled that Bitcoin activities are illegal in the country, forcing local exchange Bitcoin Co. Ltd to suspend operations.

As outlined in a blogpost, Bitcoin Co. Ltd has been working to register the currency with the relevant government agencies in order to operate in a lawful manner. As part of this due diligence, the organisation contacted the Bank of Thailand, the Thai financial governing body, in order to ask for guidance about any licenses that might be necessary for trading bitcoins.

Having initially ruled that Bitcoin was not a currency, the Bank of Thailand invited the company for a meeting on 29 July 2013 to try and understand how Bitcoin works in general and, specifically, how Bitcoin Co. Ltd operates.

Senior members of the Foreign Exchange Administration and Policy Department concluded that because there were no existing laws that apply to Bitcoin and the fact that the cryptocurrency “straddles multiple financial facets”, a wide range of Bitcoin activities should be illegal. These include buying and selling bitcoins, selling or buying any goods or services in exchange for bitcoins, sending bitcoins abroad or receiving them from anyone located outside of Thailand. The ruling has led Bitcoin Co. Ltd to cease operations until Thai laws are updated.

It seems a shame that the Bitcoin company trying to play by the rules is the one to be shut down. However, it seems virtually impossible to police the issue on an individual basis.



Blog Search : Thai central bank rules Bitcoin to be illegal