Thailand has declared that cryptocurrency will be regulated as a means of payment for services and goods to avoid potential impacts on the nation’s financial stability and economic system. The statement came from the Bank of Thailand, the Ministry of Finance and the Thai Securities and Exchange Commission.

On Tuesday, the Bank of Thailand, the Ministry of Finance and the Thai Securities and Exchange Commission jointly declared their plan to regulate cryptocurrency as a means of payment. The three regulators explained that after reviewing the profits and risks of crypto assets, they deem it mandatory to regulate the usage of digital assets as a means of payment.

Quoting that crypto business operators have been providing services related to the utilization of cryptos as a means of payment, including setting up crypto settlement systems, the regulators acknowledged that this may yield in a huge adoption of digital assets as a means of payment apart from its usage as investment, which could potentially influence financial stability and the overall economic system.

The authorities then underlined several crypto-related challenges to businesses and consumers, like price volatility, personal data leakage, cyber theft, money laundering, etc.

The announcement further outlines regulators will consider exercising power in accordance with the relevant legal systems to restrict the widespread adoption of digital assets as a means of payment for services and goods.