Bank of Thailand To Legalize Virtual Banks by 2025 To Boost Economy

  • By the end of 2023, applications will be ready for virtual banks to get licensed.
  • By the year 2024, the Bank of Thailand plans to have issued three distinct licenses.

The Bank of Thailand has announced that it would finally legalize virtual banks in the nation. A Bloomberg report forecasts that by 2025, financial institutions would be able to provide their services.

The central bank’s “Consultation Paper on Virtual Bank Licensing Framework” states that by the end of 2023. Applications will be ready for virtual banks to get licensed and provide banking services. The goal of the change is to increase competition and stimulate the development of Thailand’s economy.

Same Regulations and Oversight

By the year 2024, the Bank of Thailand plans to have issued three distinct licenses to businesses that qualify. According to the source, there are at least ten interested parties willing to issue licenses. For licensing purposes, online banks will be subject to the same regulations and oversight as brick-and-mortar banks. Also, there are criteria that aspirants must satisfy to be considered.

In order to mitigate potential financial systemic concerns. The central bank has decreed that virtual banks would operate under a “restricted phase” during the first few years of their existence. The Securities and Exchange Commission (SEC) of Thailand has recently established new regulations for crypto with the goal of increasing investor security. The regulatory body is also working on a stringent set of criteria for crypto advertisements.

As the demand for mobile payments, e-commerce, and cryptocurrencies explodes in Thailand, the nation has just signed a technical cooperation agreement with Hungary to encourage the development of blockchain technology.

Among the many crypto-related activities in 2022 in this nation is the piloting of a digital currency issued by the central bank for around 10,000 users. 

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