The Thailand SEC has approved Tether’s USDt and Circle’s USDC for trading on regulated exchanges. This decision is part of a broader effort to legitimize cryptocurrency use and encourage stablecoin adoption to boost domestic revenue. Stablecoins are also seen as a cost-effective alternative for remittances, particularly in emerging markets.
The Thailand Securities and Exchange Commission (SEC) has granted approval for Tether’s USDt (USDT) and Circle’s USDC (USDC) to be utilized in cryptocurrency trades. This decision will enable these stablecoins to be listed on regulated exchanges throughout Thailand. The announcement made by the SEC followed a public consultation on regulatory changes finalized in February, which will come into effect on March 16.
The move towards legitimizing cryptocurrency usage in Thailand has gained support, with advocates emphasizing the need for stablecoin adoption to enhance domestic revenue. Notably, a regulatory sandbox was established in August 2024 to allow select service providers to experiment with cryptocurrencies. Alongside USDt and USDC, only a few other cryptocurrencies, including Bitcoin (BTC), Ether (ETH), XRP (XRP), and Stellar Lumen (XLM), are currently approved for trading in the nation.
The approval from Thailand’s SEC will allow USDt to be more widely adopted by digital asset businesses and used as a payment method within the country. This aligns with a broader trend of increasing stablecoin adoption, particularly as these digital currencies are recognized as effective replacements for traditional remittance methods in emerging markets.
Research by Chainalysis emphasizes the potential of stablecoins for cross-border payments; it highlighted that remittances via stablecoins can be significantly lower in cost compared to conventional payment methods, particularly in regions like Sub-Saharan Africa, where they can be up to 60% cheaper. In December, around 28.5 million unique stablecoin users conducted over 600 million transactions, a small portion of the global payments sector’s $3.4 trillion transaction volume.
Stablecoins currently have a combined circulating supply nearing $230 billion. Tether’s USDt constitutes over 63% of the total stablecoin market. This highlights the important role that stablecoins are beginning to play in the financial landscape, particularly in the realm of digital payments and remittances.
In conclusion, the approval of Tether’s USDt and Circle’s USDC by Thailand’s SEC marks a significant advancement in the country’s cryptocurrency regulatory framework. This development not only validates the use of stablecoins for trading but also underscores their potential to revolutionize remittances and cross-border payments in emerging markets. As the adoption of stablecoins progresses, it signifies a shift towards modern financial practices that could improve economic efficiency.
Original Source: cointelegraph.com
