Thailand's central bank plans to approve the first batch of virtual bank operations in 2025

The Bank of Thailand will approve the first batch of virtual banks to provide services in 2025, a move aimed at promoting competition, expanding access to loans and reducing financing costs for businesses and individuals. The central bank plans to issue three licenses in 2024 and about 10 companies have expressed interest in applying, said Tharith Panpiemras, assistant governor of the central bank. Applications will open later this quarter. It is reported that under the new licensing system, the supervision of virtual banks will be the same as that of traditional commercial banks, and qualified applicants need to meet certain requirements.

The Bank of Thailand pointed out that virtual banks should not pursue profits through irresponsible loans, should not give preferential treatment to related parties, and should not abuse market dominance, posing risks to financial stability, depositors and consumers as a whole. The virtual bank will be in a "restricted phase" during its first few years of operation, which includes close monitoring to prevent financial systemic risks. Thailand’s Securities and Exchange Commission recently announced plans to impose stricter regulations on digital assets aimed at enhancing investor protection.