Thailand SEC Approves USDT and USDC for Cryptocurrency Trading

The Thailand SEC has approved the use of Tether’s USDT and Circle’s USDC for cryptocurrency trading, allowing these stablecoins to be listed on regulated exchanges. This decision aims to promote cryptocurrency usage and stablecoin adoption within the country, contributing to domestic revenue enhancement. The approval supports the integration of stablecoins in digital transactions, reflecting their growing role in cross-border payments.

The Thailand Securities and Exchange Commission (SEC) has authorized Tether’s USDT and Circle’s USDC for cryptocurrency trading, permitting these stablecoins to be listed on regulated exchanges throughout the nation. This decision, announced last week, followed public consultation regarding proposed regulatory updates that were finalized in February and will take effect on March 16.

The approval reflects increased calls within Thailand to formalize cryptocurrency use and promote stablecoin adoption to enhance domestic revenue. This initiative builds on the establishment of a regulatory sandbox in August 2024, designed for select service providers to innovate using digital currencies. Now, USDT and USDC join a limited roster of five approved cryptocurrencies in Thailand: Bitcoin (BTC), Ether (ETH), XRP (XRP), Stellar Lumen (XLM), and other currencies under examination for settlement by the Bank of Thailand.

Tether’s announcement indicated that this approval facilitates the integration of USDt within the operations of digital asset businesses, enabling its use as a payment mechanism domestically. The trend toward stablecoin adoption is gaining momentum, particularly as an alternative to traditional remittances in emerging markets.

Research from Chainalysis highlighted stablecoins as a revolutionary concept for cross-border payments, noting their cost-effectiveness in remittances. For instance, utilizing stablecoins for remittances in regions such as Sub-Saharan Africa can be as much as 60% cheaper compared to conventional methods. Additionally, a16z Crypto reported that 28.5 million unique stablecoin users engaged in over 600 million transactions in December alone, although this figure still represents a small segment of the global payments sector, which totals approximately 3.4 trillion transactions.

The overall circulating supply of stablecoins is nearing $230 billion, with Tether’s USDt comprising over 63% of this market. As stablecoins gain traction, their role in the financial ecosystem continues to expand, potentially transforming economic interactions in both local and international contexts.

The Thailand SEC’s approval of USDT and USDC marks a significant step towards legitimizing cryptocurrency in the nation and promoting stablecoin adoption for economic benefits. This development aligns with broader trends in the financial landscape where stablecoins offer innovative solutions for remittances and payment systems, particularly in emerging markets. The substantial market presence of stablecoins signals their growing importance in the global financial system.

Original Source: cointelegraph.com