- Thai policymakers are working on new crypto regulations to promote institutional adoption and integration of digital assets into the traditional financial system.
- Thailand is exploring various blockchain applications beyond retail trading, such as tokenization and stablecoin-based payments.
- India and Indonesia top the global crypto adoption list, but Thailand’s new policies could make it more competitive.
Thailand is currently prioritizing the institutional crypto market over retail, much like the US, says Binance Thailand Chief Executive Nirun Fuwattananukul.
Recently, Thailand’s Securities and Exchange Commission (SEC) proposed new digital assets regulations aimed at accelerating crypto adoption. Policymakers want to create a mature financial ecosystem where traditional and decentralized assets coexist.
Thailand is making leaps and bounds toward becoming Southeast Asia’s fintech hub. Let’s zoom in on the country’s recent developments in the sector.
New Regulations Aim to Boost Adoption
Nirun Fuwattananukul notes that Thailand’s proposed regulations have the potential to legitimize crypto in the eyes of the public and institutions. That’s a major step toward its broader adoption.
Thailand’s SEC welcomes the public to share their opinions on the bill draft. This way, policymakers hope to identify areas for improvement and develop fair, effective rules.
New policies will also grant Thai institutions access to crypto exchange-traded products like ETFs. Investors who are hesitant to hold crypto directly may be more open to professionally managed products due to lower risk.
With the increased participation of institutional players, Thailand is poised for a surge in technological innovation.
Besides, new capital flows enhance market liquidity and stability. But first, Thai regulators must roll out clear guidelines to protect investors and standardize industry practices.
Thai policymakers’ crypto-friendly stance starkly contrasts with that of US officials. While the US has also witnessed a surge in institutional adoption, local regulators continue to attack digital assets industry players like Ripple.
Crypto Applications: Not Just Retail Trading
One trend Fuwattananukul notices in Thailand is the tokenization of real-world assets. Banks in the country are exploring ways to convert equities and real estate into digital assets, which presents opportunities for blockchain technology’s integration into the broader financial system.
Earlier this month, the Siam Commercial Bank introduced stablecoin services for cross-border remittances. This allows the bank’s customers to send and receive global payments 24/7 with low transaction fees.
Additionally, Thailand’s Ministry of Finance licensed KBank to provide custody to local digital assets businesses. KBank is preparing to launch the service in early 2025.
Overall, countries across LATAM and Asia express strong interest in blockchain applications beyond retail crypto trading. This includes foreign trade using stablecoins, Play-toEarn gaming, and crypto lending protocols.
Owing to this, India and Indonesia top the global crypto adoption list. Thailand ranks #16, mostly focusing on decentralized finance and merchant services. However, new regulations can potentially drive adoption among institutional investors and boost the country’s ranking.
Will Thailand Become the New Crypto Hub?
Thailand’s new regulations may legitimize crypto and introduce numerous applications beyond retail trading. This would foster a more mature and sophisticated financial ecosystem, potentially improving the country’s economic situation.
Meanwhile, the US and Europe prioritize control over support for innovation. What will the consequences of such different approaches be? We’ll have to wait and see.
References
- The next phase of digital asset growth in Thailand (Bangkok Post)
- KASIKORNBANK to launch first Thai regulated digital asset custodian (Ledger Insights)
- Wu Blockchain (X)
