Thai Prime Minister Srettha Thavisin’s dismissal by a court on Wednesday has sparked debate about whether it will have a direct impact on the country’s rules regarding cryptocurrencies. However, it is stated that some policy practices may be affected by these developments.

Prime Minister Thavisin was dismissed by the Constitutional Court. The court accused Thavisin of violating ethics rules for appointing a lawyer serving a prison sentence to the government.

This development could lead to radical changes in Thailand’s government structure, but there remains uncertainty about how regulations regarding cryptocurrencies will be affected.

In his statement to CNN after the court decision, Thavisin stated that he was not sure whether the new government would continue its policies. This situation has created uncertainty in terms of cryptocurrency regulations in Thailand.

In the process of forming a new government, the current Pheu Thai-led coalition will need to nominate a new prime minister. This candidate will be voted on by the 500-seat Thai parliament. The appointment of a new prime minister creates uncertainties about how current policies regarding crypto will be affected.

However, Nares Laopannarai, President of the Digital Asset Association of Thailand, stated that overall crypto regulations will likely remain unaffected. Laopannarai predicts that the Digital Wallet Policy, previously proposed by Prime Minister Srettha, may be affected by these developments.

The launch of the Digital Wallet Policy earlier this month calls for a payment of 10,000 baht (approximately USD 285) upon registration, and the policy has received 25 million registrations so far.

Laopannarai stated that this initiative may face delays, revisions or cancellations due to recent developments. This policy was intended as part of Thailand’s economic revival efforts, but government changes could affect the progress of this effort.

Thailand’s Securities and Exchange Commission (SEC) launched a sandbox for crypto-related businesses last week. This sandbox allows crypto businesses to operate within a regulatory framework and aims to encourage innovation in the sector.

Bitazza Thailand CEO Tanawat Sutunthivorakoon said that the SEC has been supporting the crypto industry regardless of the party in power for the last six years. This support shows that Thailand aims to provide a stable regulatory environment in the cryptocurrency industry.

Thailand ranks 10th in Chainalysis’ 2023 Global Crypto Adoption Index and many crypto exchange licenses have been issued there. The country and its regulators are trying to strike a balance between supporting the crypto ecosystem and preventing fraud.

While investing in crypto exchange-traded funds (ETFs) is permitted, custodians must have a contingency plan.

Sanjay Popli, CEO of Cryptomind Consulting, stated that the appointment of the new SEC director makes the regulatory landscape in the industry increasingly clear. Popli stated that Sandbox emphasizes Thailand’s commitment to encouraging innovation and ensuring robust oversight.

In this context, Thailand’s general approach to cryptocurrency regulation will likely remain unchanged, although some specific policies may be affected.