Thailand approves the stablecoins USDT and USDC for trading on regulated exchanges

The Securities and Exchange Commission (SEC) of Thailand has authorized the use of stablecoins USDT and USDC for cryptocurrency trading.

This decision allows regulated exchanges to officially accept these stablecoins, strengthening the adoption of digital assets in the country.  

The announcement was published after a public consultation on the new regulations, finalized in February. The new rules will come into effect on March 16, 2024, marking an important step for the Thai crypto market.  

Stablecoin USDT and USDC: a solution for trade and remittances in Thailand

The Thai government aims to regulate and incentivize cryptocurrencies, seeing them as an opportunity for economic development.

In 2024, a regulatory sandbox was established, which allowed financial service providers to experiment with the use of digital assets in a controlled environment.  

The inclusion of stablecoin such as USDT and USDC on regulated platforms completes the already existing regulatory framework, which allows the trading of Bitcoin (BTC), Ether (ETH), XRP, and Stellar Lumen (XLM).

According to an announcement by Tether on March 10, 2024, the approval of USDT would allow companies in the crypto sector to use it as a means of payment. The decision could influence local economic growth, promoting more efficient and secure transactions.

Stablecoins are becoming an increasingly relevant alternative to traditional payment systems, especially in emerging markets. Digital assets pegged to the value of the dollar provide a stable and convenient solution for international transfers.  

A study published by Chainalysis in December 2023 described stablecoins as a “transformative” option for cross-border transactions. 

In the markets of sub-Saharan Africa, for example, such instruments allow for a reduction in transfer costs by up to 60% compared to traditional banking methods.  

This reduction in expenses makes stablecoins an accessible and advantageous resource, promoting their spread globally.  

The adoption of stablecoin continues to grow

According to data released by the venture capital company a16z Crypto, in the month of December 2023 alone, 28.5 million users executed over 600 million transactions with stablecoins. 

Despite the impressive growth, this number still represents a small percentage compared to the approximately 3.4 trillion annual transactions recorded in the global payments sector.  

Today, the overall value of stablecoins in circulation reaches almost 230 billion dollars. Among these, USDT issued by Tether is the industry leader, holding over 63% of the market.  

This predominance underscores the importance of stablecoins in the financial landscape, offering reliable tools for liquidity and digital transactions.  

The approval by the SEC of Thailand represents a significant breakthrough for the crypto sector in the country. Allowing the trading of regulated stablecoin regolamentate provides investors with greater security and usability within the local financial system.

This initiative could encourage other nations to follow the Thai example, accelerating the integration of digital assets into traditional markets.  

With the growing adoption of stablecoin globally, the role of these financial instruments will continue to expand, offering cheaper and more accessible alternatives to conventional payment methods.