The Thailand SEC has approved the trading of Tether’s USDT and Circle’s USDC, allowing their listing on regulated exchanges. This move follows a call for the legitimization of cryptocurrencies and aims to boost local revenue. The approved stablecoins join a small group of already sanctioned cryptocurrencies, indicating a growing trend towards stablecoin adoption in Thailand and beyond for remittances and payments.
The Thailand Securities and Exchange Commission (SEC) has granted approval for Tether’s USDt (USDT) and Circle’s USDC (USDC) to be utilized for cryptocurrency trading, thus permitting their listing on regulated exchanges nationwide. This decision was announced last week after public feedback on regulatory modifications proposed earlier, with the final changes scheduled to be implemented on March 16.
The move to authorize these stablecoins aligns with calls within Thailand for the legitimization of cryptocurrency use and increased stablecoin adoption to enhance domestic revenue. Notably, this follows the introduction of a regulatory sandbox in August 2024, which allows select service providers to explore cryptocurrency applications.
The newly approved stablecoins will now join a limited number of cryptocurrencies already sanctioned for trading in Thailand—specifically Bitcoin (BTC), Ether (ETH), XRP (XRP), Stellar Lumen (XLM), and certain cryptocurrencies being evaluated for settlement by the Bank of Thailand. As Tether’s announcement confirmed on March 10, the approval enables USDt to be integrated into digital asset businesses and utilized as a form of payment within the country.
Stablecoins are being recognized not only for facilitating cryptocurrency trades but also as viable alternatives for traditional remittances, particularly in emerging markets. A December report from Chainalysis identified stablecoins as a “transformative” solution for cross-border payments, noting that remittance costs could be reduced by up to 60% when utilizing stablecoins in Sub-Saharan Africa.
Venture capital firm a16z Crypto reported that in December alone, 28.5 million unique stablecoin users conducted over 600 million transactions, which, while significant, remains a small portion of the 3.4 trillion transactions within the global payments sector. Currently, stablecoins have a circulating supply valued at nearly $230 billion, with Tether’s USDt comprising more than 63% of the overall market.
In summary, the Thailand SEC’s approval of USDT and USDC signifies a notable advancement in the nation’s cryptocurrency landscape, aiming to promote stablecoin adoption for enhanced economic activity. The transition to regulated trading for these stablecoins is expected to foster legitimate cryptocurrency use while providing a cost-effective alternative for remittances, particularly beneficial for emerging markets. Although stablecoin transactions are rapidly growing, they still represent a modest fraction of the global payments industry.
Original Source: cointelegraph.com
