Bank of Thailand Bans Banks From Cryptocurrency Activities
The Thai central bank has prohibited financial institutions in the country from five key cryptocurrency activities, including banning customers from buying cryptocurrencies with credit cards.
Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies
Banks Banned From 5 Crypto Activities
Mr. Wisit Santiprabop, the central bank’s governor, signed the circular which outlines five key cryptocurrency activities banks are banned from:
Investing or trading in cryptocurrency, exchanging cryptocurrencies, creating platforms for cryptocurrency trading, allowing clients to use credit cards to buy cryptocurrencies, and from advising customers on cryptocurrency investing or trading.
The central bank stated that “cryptocurrencies were not legal tender in Thailand,” the publication conveyed, adding that “it was worried that they may be used in illegal activities such as money laundering or supporting terrorism.”
Recently, the Thai government announced that it will not ban cryptocurrencies and is developing a regulatory framework for them.
Banks Complying
He explained that there are some areas that banks need to examine before being able to comply. For example, to prevent customers from buying cryptocurrencies using credit cards, he elaborated:
In Thailand, people are buying digital currency. So the bank is asking for time to check the type of transactions that customers [make when they] swipe cards that are associated with digital currency. If applicable, the bank may have to suspend the service.
Recently, banks in the US and well as the UK have also banned their credit card customers from buying cryptocurrencies.
As for cryptocurrency traders, Poramin Insom, managing director of the Thai crypto exchange TDAX, said that “there is no impact on people who are investors of cryptocurrencies,” the news outlet quoted him. However, he explained, “TDAX is affected by this announcement, which makes the process of opening an account with the bank take longer. Bank of Thailand requests more documents.”
What do you think of the Bank of Thailand’s action? Let us know in the comments section below.
Images courtesy of Shutterstock, Bangkok Bank, SCB, Krungsri, and Bank of Thailand.
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FBI Claims Cyber Crime Syndicate Founder Medvedev Was Worth $800M+ in BTC
The Federal Bureau of Investigation (FBI) has claimed that Sergey Sergeyvich Medvedev, a Russian national recently arrested in Bangkok, was the co-founder and second in command of the Infraud group – a notorious international cyber crime syndicate. It has been reported that at the time of his arrest, Mr. Medvedev was in possession of more than 100,000 bitcoins.
Also Read: Japan Cracks Down on Foreign ICO Agency Operating Without License
Accused Cyber Crime Syndicate Co-Founder Arrested in Thailand
Sergey Sergeyvich Medvedev is accused of being the co-founder and second in command of the transnational crime syndicate, Infraud. The dark-web marketplace associated with the group was seized and taken offline by U.S. authorities.
Mr. Medvedev, a Russian national, fled to Thailand six years ago. Thailand’s Crime Suppression Division (CSD) identified the thirty-one-year-old as being located in Bangkok following an investigation prompted by American requests for cooperation with the FBI.
Maj. Nathapol Ratanamongkolsak of the CSD stated that “The United States […] requested assistance from Thai police, and the police commissioner ordered the Crime Suppression Division to work on this case in late 2017.”
Mr. Medvedev in Possession of Over 100,000 Bitcoins
CSD investigators have claimed that Mr. Medvedev was trading illegal products online in exchange for bitcoin. Thai media outlet, Bangkok Post, has reported that “judging by the evidence obtained during the Feb 2 raid, [Mr. Medvedev] had more than 100,000 bitcoin[s]” – at the time valued at approximately $800 – $900 million USD.
Thailand’s Central Investigation Bureau (CIB) chief, Thitiraj Nhongharnpitak, has confirmed that the raid took place. However, the CIB chief has declined to issue further details regarding the operation, stating that such is an international police matter and that more information will be made public soon.
FBI Cracks Down on Infraud
Reports have indicated that similar operations designed to arrest 18 members of Infraud have been carried out in over a dozen different countries – expanding on prior efforts by the FBI to crack down on Infraud, which have previously seen the arrest of 32 individuals suspected of criminal involvement with the group.
Maj. Nattapol Rattanamongkol stated “This is an operation by the [US] Department of Homeland Security that involves spontaneous [raids] in 14 countries.”
What is your reaction to the arrest of Mr. Medvedev? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Khao Sod
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Independent Ratings Agency Alerts Investors About Dangers of Tether
Another outside observer of the controversial tether cryptocurrency is warning about the dangers it presents for the uninterrupted operation of USDT exchanges. Weiss Ratings is seeking to educate investors on the systematic risk tether introduces to the ecosystem.
Also Read: Faced With Criticism IOTA Fans Try to Bully Growing List of Detractors
Inherent Risks of Blind Trust
“The big issue: There’s never been an audit, and the folks behind Tether has been quite shady when asked. They have continuously claimed their tokens are backed 100% by actual dollars, yet they have failed to present any evidence to support this claim. On social media, there appears to be consensus that what Tether is actually doing is running a fractional reserve system. In other words, most observers claim they DO NOT have the dollars to back up all those Tether coins. I tend to agree. It’s just too suspicious,” says Weiss analyst .
What Happens When the Feds Stop USDT Printing?
“The consequences of hanky-panky could be far-reaching. What happens if Tether does turn out to be fraudulent? Or what happens if a major government determines that cryptocurrencies like Tether are being used by exchanges to avoid regulations? What if this large source of liquidity suddenly evaporates?” asks. “Conceivably, it could cause exchange failures. It could drive investors to liquidate their positions, causing sharp declines in market prices.”
Should cryptocurrency investors worry about the continued liquidity of USDT exchanges? Tell us what you think in the comments section below.
Images courtesy of Shutterstock.
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