Bank subsidiaries’ investments in digital assets to be capped at 3% of capital

[webfact]

A person uses a cell phone to pay with Bitcoins during the Latin Bitcoin conference (LABITCONF) in San Salvador, on November 18, 2021. (Photo by Sthanly ESTRADA / AFP)

 

The Bank of Thailand (BoT) is to issue a new regulation to limit investment in digital assets by business units of commercial banks to no more than 3% of their capital. The regulation is expected to come into force in the middle of this year, the bank’s Assistant Governor Roong Mallikamas told a news conference on Wednesday.

 

Commercial banks, however, are not allowed direct involvement in the digital assets businesses.

 

The central bank’s move comes on the same day the Securities and Exchange Commission (SEC) issued another new rule, barring regulated digital assets operators from using their digital assets as a means of payment for goods or services. The digital assets operators will be given until end of April to comply.

 

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Full Story: https://www.thaipbsworld.com/bank-subsidiaries-investments-in-digital-assets-to-be-capped-at-3-of-capital/

 

-- © Copyright Thai PBS 2022-03-24

 

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[Whale]

Makes sense until volatility reduces significantly.

 

Will change when CBDC's come into play.

[ukrules]

It does seem to be a reasonable level to me.