The Thai cryptocurrency market is transitioning toward an institutional focus, according to the CEO of Binance Thailand. This shift is part of Thailand's broader plan to become a fintech hub in Southeast Asia.
Regulation Accelerates Development of Thailand's Crypto Market
Nirun Fuwattananukul, CEO of Binance Thailand, stated in his Bangkok Post article on October 25 that the recent move by Thailand’s Securities and Exchange Commission (SEC) is a crucial step in maturing the Thai crypto landscape. The SEC proposed rules that would allow institutional and private funds to invest in cryptocurrency products, such as U.S.-based ETFs.
“Expanding institutional fund participation supports diverse investment strategies and brings digital assets closer to the mainstream,” Fuwattananukul noted. According to him, this move not only legitimizes Bitcoin but also fosters a sophisticated ecosystem where traditional finance and crypto assets coexist.
Opportunity for Thai Financial Institutions
Fuwattananukul believes that these changes may enable Thai financial institutions to expand their portfolios with crypto assets, thus strengthening Thailand’s position as a regional hub for digital assets. According to the Thai SEC, new fund allocations will primarily target high-net-worth investors, with limited access for retail participants.
Nevertheless, the use of cryptocurrencies as a payment method remains prohibited by the Thai central bank. The SEC is also reportedly considering additional regulations regarding crypto, though specific details are yet to be disclosed.
Tokenization of Real Assets in Thailand
Tokenization of real assets (RWA), the digitization of traditional assets, is emerging as a trend in Thailand’s financial market. Many banks are exploring the transformation of bonds, real estate, and stocks into digital tokens that can be traded on the blockchain. Research from Tren Finance estimates that the RWA tokenization market could grow fiftyfold by 2030.
Thailand as a Digital Asset Hub
Fuwattananukul emphasizes that the SEC's regulatory updates allow Thailand to continue developing as a safe and dynamic ecosystem for digital assets, attracting all types of investors. Despite this institutional shift, the retail crypto market in Thailand remains robust – for instance, the Bitkub crypto exchange, a competitor to Binance Thailand, has a daily trading volume of around $33.5 million, according to CoinGecko.
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