Asia-Pacific Economic Cooperation [University/College only]
Cite as https://mymun.com/ppdb/6188
Committee: Asia Pacific Economic Cooperation Country: Thailand
Introduced in 2009, transactions that occur through the use and exchange of cryptocurrencies are independent from formal central banking systems. Cryptocurrency is a form of electronic data with no intrinsic value. Its networks reflect a remarkable lack of regulation that attracts users who seek decentralized use of currency. As such, jurisdiction over cases of securities frauds and illegal foreign exchange activities are often challenging to be enforced. The lack of scrutiny in the decentralised exchange has been critiqued as an enabler for a host of nefarious web crimes, such as evasion of tax and money laundering businesses among an intricate network of financial actors. Price volatility that arises from cryptocurrency activities further poses financial risks to investors and budgetary concerns to authorities.
While the legal status of cryptocurrencies varies substantially among countries and is still ambiguous in many of them, Thailand is firm in the stance of viewing cryptocurrency as an illegitimate mode of exchange. Since its establishment, there were attempts for institutions to legitimize cryptocurrencies by acquiring proper licenses. However, recognising the perils of an unregulated macro-economy, the Bank of Thailand do not consider cryptocurrencies as legal tender and ruled them illegal on July 29, 2013 (Smart, 2015). Financial institutions are banned ...