The Bank of Thailand will issue new rules for fintech legislation, following a call for tighter regulation of the growing sector.
New regulation presented for adoption is set to affect bitcoin and blockchain technologies, with Thailand’s central bank continuing to work toward building a fintech-specific regulatory framework in line with what was initially called for in the first half of the year.
The tight restrictions for money raising efforts in Thailand under national law have left fintech start-ups floundering. The necessity for funding throughout the early stages of the growth cycle is key to ensuring fintechs get off the ground.
Despite the risks associated with regulating alternative technology, Bank of Thailand governor Veerathai Santiprabhob has said that the bank remains open to the challenge of protecting customers.
“[Regulation] is a gesture that we welcome the new technology,” he said.
“If the technology can reach the mass public, like payments-related systems, it will benefit the country.”
The main aim of new legislation will be to prevent electronic crime, increase cybersecurity and protect consumers from fraud related risk. Santiprabhob said that customers should guard themselves against risks where possible, but that the bank would work to ensure that new technologies were suitably safe.
“If it is to be offered to the general public, all loopholes must be plugged first,” he said.
“The issue now is not financial literacy, but financial-technology literacy.”