Anusorn Thammajai, former director of Bank of Thailand (BOT), reportedly said that the cryptocurrency market would crash within a few months. Nation reported Sunday. The former director of the central bank warned:
When liquidity in the financial markets drops as a result of central bank moves to reduce quantitative easing and increase interest rates, a cryptocurrency bubble will be formed.
He pointed out that the first wave in the crypto bubble had already passed, and that many cryptocurrencies have lost over 40% this year.
Former Bank of Thailand director said that cryptocurrency is a tool to create a digital financial economy. However, it can also pose risks to financial system. Investors who have risky assets should be extra cautious in the second quarter of this year, he added.
Thammajai also stated that he supports Thai government’s plans for taxing crypto transactions and tightening regulation of cryptocurrencies. Thammajai noted that cryptocurrency has been used by illegal businesses for money laundering and illicit financing.
Thailand has recently relaxed crypto taxes rules and scrapped the planned 15% withholding tax. The Bank of Thailand, Thailand’s Securities and Exchange Commission and the country’s finance ministry declared cryptocurrency would be regulated as a payment method.
