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Thailand’s Central Bank to Allow Virtual Banks by 2025

The Bank of Thailand plans to allow virtual banks

The Bank of Thailand has announced plans to allow virtual banks to operate in the country for the first time. According to a report from Bloomberg, financial firms will be able to provide services by 2025.

The central bank has published a “Consultation Paper on Virtual Bank Licensing Framework,” which states that applications for virtual banks to act as financial service providers will be available later in 2023. The move is aimed at increasing competition and boosting Thailand’s economic growth.

The Bank of Thailand will issue three different licenses for interested companies by 2024, with at least 10 parties expressing interest in the move.

Virtual banks will be subject to the same regulations and supervision as traditional commercial banks under the licensing framework, and applicants will need to meet certain requirements.

The central bank also emphasized that virtual banks should not engage in irresponsible lending, give preferential treatment to related parties, or abuse their dominant market position, which could pose risks to financial stability, depositors and consumers as a whole. Virtual banks will be under a “restricted phase” during their first years of operation, which includes close monitoring to prevent financial systemic risks.

Thailand has recently entered into a technology cooperation agreement with Hungary to support the adoption of blockchain technology, amid a fast growth in demand for mobile payments, e-commerce, and cryptocurrencies in the country.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.