Thai c.financial institution to permit banks to do some digital asset companies

Thailand’s central financial institution is seen on the Financial institution of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Picture/File Picture

BANGKOK, March 23 (Reuters) – Thailand’s central financial institution is planning new guidelines on investments in digital property by subsidiaries of business banks, together with permitting them to take a position as much as 3% of their capital in such companies, an assistant governor mentioned on Wednesday.

The improved guidelines are anticipated to be launched in the midst of this yr and can present extra flexibility in doing enterprise whereas upgrading supervision in step with altering dangers, Roong Mallikamas instructed a information convention.

Models of business banks can be allowed to take a position not more than 3% of their capital in regulated digital asset companies, corresponding to digital asset exchanges, to restrict new dangers that might have an effect on confidence of banks, Roong mentioned.

The central financial institution has but to permit industrial banks to instantly function digital asset companies, she mentioned.

“Digital property are nonetheless dangerous,” Roong added.

Nonetheless, the central financial institution will take away a present restrict of three% of capital that industrial banks can put money into fintech, to permit them to make extra use of monetary know-how.

Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Modifying by Martin Petty

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