REGULATION OF ELECTRONIC NETWORKS FOR PEER-TO-PEER LENDING TRANSACTIONS

Abstract

The Bank of Thailand (BOT) has issued the Notification of the Bank of Thailand No. 4/2562 (2019) Re: Prescribing Rules, Procedures and Conditions for the Operation of Electronic Networks for Peer-to-Peer Lending Transactions, as a legal instrument for regulating the operation of businesses involving electronic networks in support of peer-to-peer lending (P2P lending) transactions. Notwithstanding, the application of this law for regulating the operation of electronic networks for peer-to-peer lending transactions (P2P lending platforms) remains deficient and inadequate. This article is, therefore, intended to explore legal issues in connection with the operation of P2P lending platform businesses under the law currently in force. It seeks to discuss possible difficulties or risks surrounding the regulation of the operation of P2P lending platform businesses. In particular, it provides critical analysis of whether and how additional rules should be put forth and whether to lay down certain restrictions upon the scope of rights and duties as between business operators and users. In addition, it presents thorough discussions of positive and negative effects possibly emerging from the establishment of regulatory rules in an endeavor to prevent loss to consumers as well as hindrances to stability of fiscal systems of Thailand. For this purpose, this article is based upon a comparative study method, by which Thai law is compared and contrasted with the laws the United Kingdom, the United States of America, China, and Japan, with a view to suggesting appropriate and adequate regulatory approaches in relation to the operation of businesses involving P2P lending platforms in Thailand.