The Thailand Securities and Exchange Commission (SEC) has recently made significant strides in the cryptocurrency landscape by approving Tether’s USDt (USDT) and Circle’s USDC (USDC) for trading on regulated exchanges within the country. This development marks a critical juncture in the legitimization of stablecoins within Thailand’s financial ecosystem.
Last week, the SEC announced these approvals, which come on the heels of public consultations regarding proposed regulatory changes finalized in February. These changes are set to take effect on March 16, paving the way for more structured and safe cryptocurrency transactions.
As highlighted in previous reports, there has been an increasing demand in Thailand for the recognition and regulation of cryptocurrency, with many advocating for the adoption of stablecoins to bolster domestic revenue. This push follows the establishment of a regulatory sandbox in August 2024, designed to allow select service providers to experiment with cryptocurrencies in a controlled environment.
The recent approvals mean that USDT and USDC will join Bitcoin (BTC), Ether (ETH), XRP, and Stellar Lumen (XLM) as the only cryptocurrencies currently permitted for trading in Thailand. Notably, the Bank of Thailand is also conducting tests on other cryptocurrencies for potential settlement purposes.
Tether’s announcement on March 10 further emphasizes the impact of this approval, noting that it allows USDt to be utilized by digital asset businesses throughout Thailand and serves as a new payment infrastructure within the nation.
Rising Adoption of Stablecoins
Stablecoins are increasingly being recognized not only for facilitating cryptocurrency trades but also as a compelling alternative to traditional remittance methods, particularly in emerging markets. A report by Chainalysis revealed stablecoins to be a “transformative” asset for cross-border payments and remittances, highlighting their ability to reduce costs. For example, in Sub-Saharan Africa, using stablecoins for remittances can be up to 60% less expensive than conventional practices.
Venture capital firm a16z Crypto estimated that in December alone, approximately 28.5 million unique stablecoin users executed over 600 million transactions. However, this number represents just a fraction of the overall global payments industry, which encompasses 3.4 trillion transactions.
Stablecoin transfers offer distinct advantages over traditional payment methods, in terms of both cost and speed. Source: a16z Crypto
Currently, the market capitalization of stablecoins hovers around $230 billion, with Tether’s USDt holding a considerable 63% market share. This significant presence underscores the increasing relevance of stablecoins in global finance.
As Thailand embraces USDT and USDC, the potential for stablecoins to shape the future of the cryptocurrency market continues to grow. Such regulatory actions may not only enhance Thailand’s position in the global digital asset landscape but also serve as a beacon for other nations considering similar paths.
