New Thai government may take fresh view on cryptos

Thailand’s two major opposition parties, the Move Forward party and Pheu Thai, announced on May 15 the intention to establish a ruling coalition following a victory in the weekend election.

The defeat of military-backed parties, which have held power for almost ten years, signals a significant shift in the country’s political landscape.

Capitalizing on the momentum

In a bid to solidify their dominance in the lower house, Thailand’s two largest pro-democracy parties have agreed to form a coalition. Following their performance in elections, both parties moved swiftly to capitalize on their momentum.

The liberal Move Forward party, which emerged as the front-runner in the polls, asserted its mandate to lead. Party leader Pita Limjaroenrat took to Twitter in the early hours of May 15, expressing his intention to be a prime minister for all citizens.

 In a press conference, he revealed that invitations had been extended to five parties to join forces and shape the next government.

Given Move Forward’s lead in terms of total seats and popular support, it garnered the support of the Pheu Thai party, which secured second place in the election.

The impact on cryptos may be small

The Thai government and regulators have taken a relatively progressive stance towards cryptocurrencies, recognizing their potential benefits while also implementing regulations to protect consumers and prevent illicit activities. It is difficult to say if the new government will make changes.

Cryptocurrencies are legal to own in Thailand, but can not be used for payments. The Thai Securities and Exchange Commission (SEC) is the primary regulatory authority overseeing cryptocurrency-related activities. and the Thai government has established regulations to govern cryptocurrencies, initial coin offerings (ICOs), and digital asset businesses.

The Digital Asset Business Emergency Decree came into effect in May 2018, providing a legal framework for cryptocurrency exchanges, brokers, and ICO issuers.

Cryptocurrency businesses, including exchanges and digital asset brokers, need to obtain licenses from the Thai SEC to operate legally. The licensing process involves meeting specific criteria, such as minimum capital requirements, system security standards, and anti-money laundering measures.

Beyond cryptocurrencies, Thailand has shown interest in blockchain technology. Various sectors, including finance, supply chain management, and government services, are exploring the potential applications of blockchain to enhance transparency, efficiency, and security.

Shaping the new government

The victory of Thailand’s opposition parties, Move Forward and Pheu Thai, in the recent election has sent shockwaves through the political landscape. While the results seem to deliver a significant blow to the military-backed parties, the parliamentary rules still favor the military and its allies, allowing them to potentially shape the new government.

However, the success of the Move Forward party, fueled by the enthusiasm of the youth, carries implications beyond politics. The party’s liberal agenda and promises of bold reforms, such as dismantling monopolies and revising laws related to insulting the monarchy, have resonated with the younger generation.

This wave of excitement could extend its influence beyond governance and potentially impact other sectors, including the cryptocurrency industry.

With a focus on breaking up monopolies, the Move Forward party’s agenda may align with calls for more competition and innovation in the cryptocurrency sector. 

Moreover, if the party succeeds in implementing its proposed reforms, it could create a more favorable environment for the development and adoption of cryptocurrencies in Thailand. 

Additionally, potential revisions to laws related to insulting the monarchy might also have implications for freedom of expression in the digital realm, which could indirectly impact discussions and activities related to cryptocurrencies.