Thailand SEC Approves USDT and USDC for Cryptocurrency Trading

The Thailand SEC has sanctioned Tether’s USDT and Circle’s USDC for trading on regulated exchanges, spotlighting a push for legitimizing cryptocurrency usage. This move aligns with Thailand’s growing embrace of stablecoin adoption amidst broader aspirations for enhancing domestic revenue through innovative financial solutions.

The Thailand Securities and Exchange Commission (SEC) has approved the use of Tether’s USDt (USDT) and Circle’s USDC (USDC) for cryptocurrency trading, enabling these stablecoins to be listed on regulated exchanges in Thailand. This announcement followed a feedback solicitation related to regulatory amendments finalized in February, with implementation set for March 16.

The approval of USDT and USDC aligns with increased calls within Thailand for legitimizing cryptocurrency usage and encouraging stablecoin adoption to enhance domestic revenue, particularly after the establishment of a regulatory sandbox in August 2024, allowing select service providers to explore cryptocurrency applications.

Currently, USDT and USDC become part of an exclusive group of just six approved cryptocurrencies for trade in Thailand, alongside Bitcoin (BTC), Ether (ETH), XRP (XRP), Stellar Lumen (XLM), and certain cryptocurrencies being assessed for settlement by the Bank of Thailand. Tether indicated that this approval facilitates the use of USDt by digital asset businesses and as a payment option within the country.

The rise of stablecoin adoption is notable as they are increasingly perceived as viable alternatives to traditional remittance systems, especially within emerging markets. A December study by Chainalysis identified stablecoins as a “transformative” solution for cross-border payments, indicating that employing stablecoins for remittances is significantly more cost-effective than conventional strategies in areas like Sub-Saharan Africa.

According to the venture capital firm a16z Crypto, approximately 28.5 million unique stablecoin users conducted over 600 million transactions within a single month in December. Despite this activity, stablecoin transactions remain a small segment of the global payments sector, which encompasses 3.4 trillion transactions. Presently, the total market value of stablecoins is nearing $230 billion, with Tether’s USDt constituting over 63% of this supply.

The approval of USDT and USDC by the Thailand SEC marks a significant step toward integrating stablecoins into the national cryptocurrency landscape. This development reflects the growing recognition of stablecoins as essential instruments for enhancing domestic revenue and facilitating cost-effective remittances, particularly in emerging markets. As the role of stablecoins continues to expand, their influence on global payment systems is likely to increase.

Original Source: cointelegraph.com