Thailand Approves Crypto as Underlying Assets in Markets

• Thailand is currently focusing on wealthy institutional investors, as it gives wings to its crypto ambitions. 
• The government introduced an app in August for short-term tourists to change crypto to local currency, but users must go through strict KYC. 

The government of Thailand accepted the proposal of the Finance Ministry on February 10, which permits digital assets to be utilised as underlying assets in the derivatives and capital markets of the country. 

This initiative focuses on modernising Thailand’s derivatives markets in line with international standards, making the regulatory oversight robust and investor protection in place, and placing itself as a regional hub for institutional crypto trading, as reported by the Bangkok Post. The Securities and Exchange Commission of Thailand will revise the Derivatives Act to permit these new asset classes, comprising Bitcoin (BTC) and carbon credits. 

The chief executive of Binance Thailand, Nirun Fuwattananukul, says that the decision to officially identify digital assets, adding crypto and digital tokens, shows an increasing understanding that digital assets are no longer just speculative instruments but an emerging asset class having the potential to reshape the base of capital markets. 

He further went on to add that it was a watershed moment for the capital markets of the country, leaving a strong signal that Thailand is placing itself as a “forward-looking leader” in Southeast Asia’s digital economy. 

More Advancements

Thailand is currently focusing on wealthy institutional investors, as it gives wings to its crypto ambitions. The move also lines up with the Stock Exchange of Thailand’s plan to introduce Bitcoin futures and exchange-traded products this year. 

The secretary-general of the SEC, Pornanong Budsaratragoon, mentioned this initiative will reinforce the identification of crypto as an asset class, publicise market inclusiveness, intensify portfolio diversification, and amplify risk management for investors. 

Retail trading is very famous in Thailand, with the Kingdom’s biggest exchange, Bitkub, witnessing daily volumes of $65 million, as per CoinMarketCap. Although the central bank has banned crypto payments, consumer stablecoin use also remains banned. 

The government introduced an app in August for short-term tourists to change crypto to local currency, but users must go through strict KYC and customer due diligence checks, and use is limited to government-approved outlets. 

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