Bank of Thailand Plans to Establish Virtual Banks by 2025
The Central Bank of Thailand recently released a consultation paper on Virtual Bank Licensing Framework.
The application allows virtual banks to function as financial service providers.
Under the licensing structure, virtual banks will be subject to the same regulations and supervision as traditional banks.
The Bank of Thailand has announced plans to establish virtual banks
financial firms will be able to provide services by 2025.
The central bank's "Consultation Paper on Virtual Bank Licensing Framework" will allow virtual banks to function as financial service providers. The move aims to promote Thailand's economic growth.
By 2024, the Bank of Thailand will offer three different licenses to interested firms. The reports reveal that at least ten parties are interested in obtaining licenses.
Under the licensing structure, virtual banks will be subject to the same regulations as traditional banks. Furthermore, eligible applicants must meet certain requirements.
The central bank noted that virtual banks would be in a "limited phase" during their initial years of operation. Furthermore, Thailand's SEC recently announced steps to strengthen crypto regulations in order to increase investor protection. The authority is also developing a strict set of guidelines for crypto advertising.
In addition, Thailand recently signed a tech agreement with Hungary to assist in the addition of blockchain technology.
In 2022, the country saw a variety of crypto-related events, including plans to launch a CBDC for 10,000 users. Thailand is ranked seventh on Chainalysis' Global Crypto Adoption Index.
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