Thailand Approves Stablecoins USDT and USDC for Trading on Regulated Exchanges

input: Thailand is taking significant steps to enhance its cryptocurrency landscape by approving two major stablecoins, USDT and USDC, for trading on regulated exchanges. This decision, made by the Securities and Exchange Commission (SEC)

Thailand's Securities and Exchange Commission (SEC) has approved two major stablecoins, USDT and USDC, for trading on regulated exchanges in the Southeast Asian country.

The inclusion of these stablecoins expands the list of approved cryptocurrencies, which already features Bitcoin, Ether, Ripple, and Stellar.

The SEC's decision, reported by CCWire, follows a public hearing held in February to discuss the addition of stablecoins to the approved list.

Out of the 14 participants at the hearing, 10 expressed support for including USDT and USDC in the list of approved digital tokens.

Major crypto stablecoins such as Tether's USDT and Circle's USDC are currently not permitted for use in initial coin offerings (ICOs), ICO portal transactions, or as trading pairs on digital asset exchanges in Thailand.

However, the SEC is now revising its criteria for cryptocurrencies, aiming to differentiate between established, secure assets and the ever-growing number of new tokens entering the market.

The newly approved stablecoins will be available for use in new coin offerings, and they will be listed as trading pairs on digital asset exchanges.

These changes will take effect on March 16, 2025.

The SEC's decision follows the Bank of Thailand's move to explore using approved cryptocurrencies for financial settlements.

The inclusion of USDT and USDC will enhance the investment landscape for digital tokens and improve the overall stability of the market.

Public Support for Stablecoins Addition

The majority of participants at the hearing expressed support for the move to add stablecoins to the approved list.

Tether, the issuer of USDT, expressed its intent to cooperate fully with the SEC to ensure a smooth integration of USDT into the legal and financial ecosystem of Thailand.

"This approval is a pivotal moment for Thailand's financial landscape," Tether said in a statement.

"The approval will allow USDT to be traded within the country, facilitating its listing on regulated exchanges and paving the way for its acceptance as a payment method."

It will also attract more investment and interest in the cryptocurrency market, fostering a more dynamic financial ecosystem.

Tether’s entry into the Southeast Asian nation marks a significant step in the region, where other countries like Vietnam and Singapore are also actively engaging with cryptocurrencies.

This development positions Thailand as a leader in digital asset innovation in Southeast Asia.

Crypto Firms Operating Without a License

In April of last year, Thailand implemented a ban on all crypto firms operating without a license to protect financial stability and safeguard investors from the risks associated with volatile assets.

The SEC is actively working with the government to identify and block unauthorized digital asset service providers, ensuring a secure trading environment for investors.

Recently, Thailand has shown a growing interest in utilizing cryptocurrencies to stimulate its economy.

In January, Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced plans to test cryptocurrencies as an alternative payment method for tourists, indicating a shift towards embracing digital assets in everyday transactions.

It is important to note that cryptocurrency gains in Thailand are subject to a 15 percent tax. According to Thai tax law, any foreign-sourced income, including profits from cryptocurrency, is taxable when remitted to the country, further integrating digital assets into the national economy.