The Thailand SEC has approved Tether’s USDt and Circle’s USDC for trading on regulated exchanges, following a public consultation process. This acceptance is part of Thailand’s initiative to legitimize cryptocurrency, enhance revenue, and follows the establishment of a regulatory sandbox for digital asset experimentation. Additionally, stablecoins are being recognized as cost-effective alternatives for remittances, particularly in developing markets.
The Thailand Securities and Exchange Commission (SEC) has officially approved Tether’s USDt (USDT) and Circle’s USDC (USDC) for trading on regulated exchanges within Thailand. This decision, announced last week, follows a public feedback solicitation on regulatory changes finalized in February, slated to take effect on March 16.
The approval of these stablecoins is part of Thailand’s broader effort to legitimize cryptocurrency use and promote stablecoin adoption to enhance domestic revenue. This initiative aligns with the establishment of a regulatory sandbox introduced in August 2024, permitting selected service providers to explore cryptocurrency functionalities.
With the recent approvals, USDt and USDC will join a select group of five other approved cryptocurrencies within Thailand: Bitcoin (BTC), Ether (ETH), XRP, Stellar Lumen (XLM), and various digital currencies under trial for settlement by the Bank of Thailand. Tether stated in a March 10 announcement that this approval permits USDt’s adoption by local digital asset businesses and its use as a payment mechanism within the nation.
The increase in stablecoin usage extends beyond trading; they are also emerging as viable alternatives to traditional remittances, particularly within developing markets. A December analysis by Chainalysis recognized stablecoins as a transformative option for cross-border transactions, highlighting that their use in Sub-Saharan Africa can offer remittance savings of up to 60% compared to conventional methods.
Venture capital firm a16z Crypto reported that 28.5 million stablecoin users executed over 600 million transactions in December 2023 alone. However, this figure remains a small fraction of the overall global payments industry, which encompasses approximately 3.4 trillion transactions. Currently, stablecoins have a circulating supply nearing $230 billion, with Tether’s USDt constituting over 63% of this total.
The approval of USDt and USDC by the Thailand SEC signifies an important step towards legitimizing cryptocurrency, enhancing digital transactions, and promoting stablecoin adoption in the country. This move aligns with the global trend of utilizing stablecoins as cost-effective alternatives for remittance services, especially vital for emerging markets. Although stablecoin usage is growing, it still represents a small portion of the overall payments landscape, indicating potential for future expansion.
Original Source: cointelegraph.com
