Virtual currency Bitcoin blocked in Thailand by BOT
Bitcoins, the cybercurrency trying to go mainstream, have been suspended for trading in Thailand after officials declared it illegal.
A Bitcoin exchange in Thailand says it has suspended trading after officials declared the virtual currency illegal.
The company overseeing bitcoins in Thailand said on its website that the central bank informed it on Monday that it is illegal to trade bitcoins, move them in or out of the country, or use them to buy or sell goods or services.
Despite wild swings in value, the virtual currency has been inching toward broader acceptance. Atlanta-based BitPay handles bitcoin transactions for more than 4,500 companies, taking payments in bitcoins and forwarding the cash equivalent to the vendor involved.
The statement said Bitcoin Co Ltd had applied to the Bank of Thailand for a money-exchange licence as part of efforts in the past several months to ensure it was operating lawfully in the country.
The central bank said it will consider the issue further with no specific time line, said the company’s statement.
Governor Prasarn Trairatvorakul said the central bank rejected the request for foreign exchange operating licence of bitcoins on concern that it would lead to currency exchange speculation.
‘‘We need some time to seek advice from the ICT ministry and the Securities and Exchange Commission first,’’ he said.
Bitcoins are created, distributed, and authenticated independently of any bank or government. The currency’s cryptography makes it almost immune from counterfeiting, and its relative anonymity holds out the promise of being able to spend money across the internet without scrutiny.
Vitalik Buterin, a writer for Bitcoin Magazine, said Bitcoin’s fate in Thailand may give the electronic currency more credibility in some circles. But he was concerned it didn’t bode well for Bitcoin in China.
‘‘Thailand is not exactly a bastion of liberty,’’ he said in an email. ‘‘This may influence it (China) to take a harsher stance on Bitcoin as well.’’