Thailand’s SEC has approved USDT and USDC for trading, effective March 16. This decision follows public consultation and is aimed at promoting stablecoin use to enhance domestic revenue. The approved stablecoins join a handful of other cryptocurrencies already permitted, reflecting a growing trend toward legitimizing cryptocurrency within the nation.
The Thailand Securities and Exchange Commission (SEC) has officially approved Tether’s USDt (USDT) and Circle’s USDC (USDC) for cryptocurrency trading. This approval allows these stablecoins to be listed on regulated exchanges throughout Thailand. The SEC made this announcement following a public feedback process and finalized regulatory changes from February, which take effect on March 16.
The regulatory development is significant as it aligns with increasing calls within Thailand to legitimize cryptocurrency use and promote stablecoin adoption to enhance domestic revenue. This decision follows the introduction of a regulatory sandbox in August 2024, designed for select service providers to explore cryptocurrency applications.
USDT and USDC now join an exclusive list of approved cryptocurrencies for trading in Thailand, which includes Bitcoin (BTC), Ether (ETH), XRP (XRP), Stellar Lumen (XLM), and other cryptocurrencies under examination for settlement by the Bank of Thailand. Tether announced that this approval enables USDt to be utilized by digital asset businesses and serves as a payment method within the country.
The rise of stablecoin adoption is noteworthy, particularly as they emerge as a viable alternative to traditional remittance systems, especially in developing markets. A December report by Chainalysis labeled stablecoins as a “transformative” solution for cross-border payments, noting that transactions using stablecoins in regions like Sub-Saharan Africa can be up to 60% less expensive than conventional methods.
Additionally, data from a16z Crypto indicates that there are 28.5 million unique stablecoin users who conducted over 600 million transactions as of December. Nevertheless, this figure remains a small fraction of the overall 3.4 trillion transactions in the global payments sector. The total circulating supply of stablecoins is approximately $230 billion, with Tether’s USDt comprising over 63% of this market.
In summary, the Thailand SEC’s approval of USDT and USDC marks a pivotal moment for cryptocurrency trading within the country. This move supports the increasing acceptance of digital currencies and stablecoins as alternatives to traditional financial systems, while also promoting economic growth. The trend towards stablecoin adoption is validated by their significance in cross-border transactions, particularly in emerging markets, signaling the potential for wider public use and regulatory acceptance in the future.
Original Source: cointelegraph.com
