Feeds

Bank of Thailand bans Bitcoin

Buying and selling Bitcoin banned, mining them still okay

Boost IT visibility and business value

Bitcoin suffered a major blow to its international reputation on Monday after Thailand became the first country to outlaw the virtual currency outright.

The online-only currency biz had been trying to operate lawfully in the Southeast Asian country, requesting guidance from the Bank of Thailand about which licenses it needed to procure, it said in a statement.

The bank, which acts as the governing body of Thailand’s financial services industry, had initially ruled Bitcoin was not a currency, however, on Monday it changed its mind and apparently invited the firm back to a meeting with 15 bank officials.

The Bitcoin statement continued with the following:

At the conclusion of the meeting senior members of the Foreign Exchange Administration and Policy Department advised that due to lack of existing applicable laws, capital controls and the fact that Bitcoin straddles multiple financial facets the following Bitcoin activities are illegal in Thailand:

Buying Bitcoins; Selling Bitcoins; Buying any goods or services in exchange for Bitcoins; Selling any goods or services for Bitcoins; Sending Bitcoins to anyone located outside of Thailand; Receiving Bitcoins from anyone located outside of Thailand.

The ruling will be a blow to the virtual currency as it seeks to stay afloat in the face of increasing pressure from financial authorities across the globe.

Back in May, the US Department of Homeland Security prevented Americans from reaching Mt Gox – the world’s largest Bitcoin exchange – pending a further investigation into whether it was operating as an "unlicensed money service business".

There’s still a great deal of suspicion in official circles about the crypto-currency system which many suspect attracts a motley crew of punters including money launderers, terrorists and drug dealers.

That said, if financial regulators around the world won't even let Bitcoin get the licenses it needs to operate and be vetted properly, its hands will be pretty much tied. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.