The Bank of Thailand (BoT) assistant governor has revealed the central bank is considering new rules governing subsidiaries of commercial banks’ investments in digital assets, including allowing them to invest up to 3% of their capital in such businesses.
Roong Mallikamas told a news conference about the new rules which are expected to be implemented in the middle of 2022, saying the rules will allow for greater business flexibility while also upgrading supervision to keep pace with changing risks.
Roong said commercial bank subsidiaries will be limited to investing no more than 3% of their capital in regulated digital asset businesses, such as digital asset exchanges, in order to mitigate new risks that could undermine banks’ confidence.
The BoT assistant governor noted, however, that the central bank has not yet permitted commercial banks to operate digital asset businesses directly.
According to Roong, the BoT, on the other hand, will eliminate the current cap of 3% of the capital that commercial banks can invest in fintech, allowing them to make greater use of financial technology.