The Bank of Thailand has announced intentions to let virtual banks operate for the first time in Thailand. By 2025, financial institutions will be able to offer services, crypto media outlet CoinTelegraph reported on January 16.

Software that would enable virtual banks to act as suppliers of financial services will be available later in 2023, according to the central bank's Consultation Paper on Virtual Bank Licensing Framework, which was released for public comment. By 2024, the Bank of Thailand will grant interested businesses access to three licenses. According to the study, at least ten parties are interested in issuing licenses.

The central bank asserts that during the first years of operation, virtual banks would operate in a "limited phase," which entails careful supervision to guard against systemic financial concerns. Thailand's Securities and Exchange Commission has announced measures to tighten regulations for cryptocurrencies to increase investor safety. Additionally, the authority is creating stringent regulations for cryptocurrency advertisements.

Insights claims that under the licensing system, virtual banks will be subject to the same rules and oversight as conventional commercial banks. Moreover, this move is intended to boost the nation's economic and cryptocurrency-related business growth in Thailand.