Thailand's Securities and Exchange Commission (SEC) recently revealed the concept of including cryptocurrency in the regular Thai financial market. The plan aims to allow mutual and private funds to invest in cryptocurrencies, such as US-based spot crypto ETFs. As stated by Binance Thailand's chief executive officer, Nirun Fuwattananukul, such a decision marks a shift in the crypto sphere's strategic positioning and increases the credibility of digital assets.
The SEC's proposal seeks to create a structured environment where institutional investors can partake without restrictions, encouraging a broader acceptance of digital assets. As part of this regulatory shift, the SEC is soliciting public feedback on revising investment criteria for mutual funds in crypto assets, a significant step towards the maturation of Thailand's cryptocurrency framework.
Fuwattananukul expressed that Thailand is transitioning from a retail-centric to an institutionally focused crypto market. By allowing institutional investments, the SEC aims to provide diverse investment strategies and foster stable growth in the crypto economy. This regulatory pivot is expected to bolster liquidity and establish more stable price points, potentially positioning Thailand as a fintech hub in Southeast Asia.
The SEC has emphasized the need for forward-looking regulation that accommodates the dynamic nature of digital assets. This approach includes considering new regulations for various crypto activities and limiting retail access to ensure focused growth through high-net-worth investors. Despite these changes, Thailand's central bank remains prohibited from using crypto for payments.
In his opinion piece, Fuwattananukul highlighted that the proposed regulations are part of a broader strategy to integrate traditional finance with crypto innovations. The approach includes exploring real-world asset (RWA) tokenization, which could transform bonds, real estate, and equities into tradeable digital assets on blockchain platforms. According to Tren Finance, the RWA tokenization sector might grow exponentially by 2030.
Thailand's oldest bank is also joining the ranks of digital transformations, revealing stablecoin remittance services by incorporating crypto into traditional banking systems. With Thailand still shaping its rules and further clarifying its stance to the markets, the SEC updates are on course to offer a safe and vibrant playing ground for all market stakeholders, thus putting Thailand in the driving seat as a potential leading hub in Asia.