Virtual banks will appear in Thailand by 2025
2023.01.16 01:22
Virtual banks will appear in Thailand by 2025
By Tiffany Smith
Budrigannews.com – The Bank of Thailand has made it clear that it wants to let virtual banks start up in Thailand for the first time. According to a Bloomberg report, financial firms will be able to offer services by 2025.
According to the central bank’s “Consultation Paper on Virtual Bank Licensing Framework,” applications that enable virtual banks to provide financial services will be available later in 2023. The move aims to boost Thailand’s economic growth and intensify competition.
By 2024, interested businesses will be granted three distinct licenses by the Bank of Thailand. According to the report, at least ten parties are interested in granting permissions.
Under the licensing framework, virtual banks will be subject to the same regulations and supervision as traditional commercial banks. In addition, qualified applicants will need to satisfy a few conditions. Additionally, the central bank noted:
“Virtual banks should not start a race to the bottom by lending irresponsibly, give preference to related parties, or abuse their dominant market position, which will put financial stability, depositors, and consumers in general at risk.”
The central bank says that virtual banks will go through a “restricted phase” their first few years of operation, which includes close monitoring to avoid risks to the financial system. The Securities and Exchange Commission of Thailand recently announced plans to tighten crypto regulations with the intention of improving investor protection. The authority is also developing stringent guidelines for crypto ads.
In light of the country’s rapidly expanding demand for cryptocurrencies, e-commerce, and mobile payments, Thailand and Hungary recently signed a technology cooperation agreement to encourage the use of blockchain technology.
In 2022, the nation saw a number of crypto-related developments, including plans to pilot a digital currency issued by the central bank for approximately 10,000 users. The analytics firm Chainalysis has placed Thailand eighth on the Global Crypto Adoption Index.
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