Bank of Thailand (Bank of Thailand) issued an announcement aboutGuidelines group supervisionfinancial businessofcommercial bank business and conducting transactions related todigital assets (Digital Asset) to enable the financial business group to operate and gradual transactions related to digital assets under the regulatory framework flexible with good governance Capital adequacy Linkage Risk within the financial business group Taking proper care of customers who use the service as well as supervising and managing other related risks. and take care of the impact on the overall financial system
This notification shall apply to commercial banks, parent companies, subsidiaries and all associated companies of commercial banks in the financial business group.
This announcement is important.
1. To companies within the financial business group except commercial banks Able to do business related to digital assets gradually Under a flexible regulatory framework, it supports technology or the development of financial services that will help make the financial system more efficient. and increase access to financial services In order to benefit people and businesses, do not block the use of digital assets in ways that are beneficial to the economy, such as digital asset trading centers. digital asset broker digital asset traders digital asset advisor money manager digital assets Digital asset depository service provider
2. There is supervision and management of risks from transactions related to Commercial bank digital assets and business risks and transactions related to digital assets of companies in the financial business group that may affect public deposits People’s confidence in the banking business, including the stability of the financial system
3. Protect customers who use the service to receive fair services. Prevents solicitation of clients, especially vulnerable groups, who may not have a sufficient understanding of digital assets. and has the ability to accept low risks for investment
4. Raise the country’s digital asset business standards to operate. and providing appropriate services to customers Comparable to the standards that customers expect from commercial banks’ services
However, the regulation of digital assets in order to prevent the impact on the operating status which may affect the deposits of the people and maintain public confidence in the commercial banking business including the stability of the financial institution system
which if companies in the financial business group with or without a specific regulatory body If you wish to undertake the following digital assets business, the parent company shall apply for permission from the Bank of Thailand on a case by case basis.
while Business with core business/main activities related to digital assets or any other digital asset business that does not have a specific regulatory body
by the Bank of Thailand may require testing by applying the Bank of Thailand’s Guidelines on Guidelines for Participating in Testing and develop innovations that apply new technologies to support financial services (Regulatory Sandbox) mutatis mutandis.
In order to establish or have a company that operates business related to digital assets in the financial business group The parent company must ensure that the financial business group is stable by There is sufficient capital to cover the losses that may occur from such companies. in that company has been deducted from the total capital of the financial business group. financial business group Can also maintain capital funds in accordance with the regulations on capital supervision for financial business groups of the whole scope of digital asset investment, can issue and hold digital assets only for the purpose of innovation development. To increase efficiency or quality in providing financial services or supporting businesses
by requiring the parent company to request permission from the Bank of Thailand on a case-by-case basis and the Bank of Thailand may require testing by applying the Bank of Thailand guidelines on the guidelines for participating in the test and develop innovations that bring new technologies to support financial services (Regulatory Sandbox)Can be used mutatis mutandis, whether in the case of adding a company in a financial business group to engage in digital asset business or in the case of companies in the financial business group increasing or expanding the scope of business on additional digital assets
including in the case of changes in the structure of the financial business group that operates business related to digital assets, even if it does not cause the increase or decrease of companies in the financial business group, such as moving a subsidiary that operates business related to digital assets from the original holding company holding shares directly It is a shareholding through another subsidiary instead. (Although the subsidiary operating in the digital asset business will remain outside the Solo Consolidation as before)
for commercial banks and companies in the financial business group Able to invest in investment units of funds or trust certificates of trusts with a policy of minority investment in digital assets according to the Bank of Thailand Notification Re: Rules and investment methods of a financial institution or a financial business group, as the case may be. But do not invest in the investment units of the fund. or a trust certificate of a trust that has a policy to invest in digital assets as the main
In addition, the Bank of Thailand does not want commercial banks to And companies in the financial business group provide all types of loans intended for investment in digital assets to individual customers, such as personal loans, credit cards, including loans with digital assets as collateral. to take care of high-risk investment loans that may affect debtor quality and household debt problems in the country in terms of limiting the amount of credit, investing, creating contingent liabilities or conducting transactions similar to lending to businesses related to digital assets (Digital Asset Related Business Limit)
commercial bank and companies within the financial business group can provide credit, invest, create contingent liabilities or conducting transactions similar to lending to businesses relating to digital assets in accordance with the regulations prescribed by the BOT, in total not exceeding 3% of commercial bank’s capital
Investing in digital asset businesses both within and outside the financial business group either directly or indirectly
while companies in the financial business group Must limit the amount of investment in digital asset business both within and outside the financial business group total not more than 3% of the financial business group’s capital
If the financial business group invests more than the above ratio, the excess shall be deducted from the Common Equity Tier 1 capital (Common equitytier 1: CET1) of the financial business group in full as prescribed and the parent company to discuss BOT on the composition of the board on a case-by-case basis
This is to prove the business operation under the ratio specified above. Let the parent company prepare a data report by separating each company. and an overview of the financial business group adequately and prepared on a quarterly basis for the Bank of Thailand’s financial institution inspectors can check Or send it to the Bank of Thailand upon request, including the amount of credit, investment, and contingent liabilities. or conducting transactions that are similar to credit granting at the commercial bank and each company in the financial business group to businesses related to digital assets both in and outside the financial business group
including transactions that resemble credit that each company in the financial business group that engages in digital asset business receives the source of fund from companies within and outside the financial business group
However, if the parent company can prove The Bank of Thailand was able to determine which companies in the financial business group engaged in digital asset business that had upgraded their business standards in various fields, such as good governance. reputation risk Technology Risk Management and cyber security Prevention and Suppression of Money Laundering and financial support for terrorism and the proliferation of weapons of mass destruction (Anti-Money Laundering and Combating the Financing of Terrorism and the Proliferation including the protection of service users (ConsumerProtection) and customer suitability assessment (Client Suitability) appropriately. Comparable to the standards that customers expect from commercial banks’ services
Bank of Thailandmay consider not to count credit, investment, contingent liabilities or conducting transactions similar to credit granting to companies in the financial business group that operates digital asset business in the calculation
Digital Asset Related Business Limit as above by requiring the parent company to request permission from the Bank of Thailand on a case-by-case basis