Thaksin Shinawatra Urges Thailand to Regulate Stablecoin Trading, Legalize Online Gambling

Thaksin Shinawatra, Thailand's former prime minister, emphasized that stablecoin trading carries “no risk” and urged the government to regulate the trade of stablecoins and other tokens backed by tangible assets.

Former Thai Prime Minister Thaksin Shinawatra has urged the government to regulate stablecoin trading and other cryptocurrencies backed by tangible assets, highlighting the potential for increased revenue and economic modernization. Speaking on Jan. 13, Thaksin also proposed expanding Thailand’s revenue streams by legalizing online gambling.

Emphasizing the low risk associated with stablecoins, Thaksin encouraged the government to legalize their trade. He also proposed expanding Thailand’s revenue streams by legalizing online gambling, highlighting the potential for nearly 100 billion baht ($4 billion) in annual tax revenue.

Highlighting the Potential of Online Gambling Tax

Thaksin also drew attention to the substantial revenue potential of legalizing online gambling in Thailand. The country’s underground gambling industry reportedly involves 2 to 4 million users, with annual gains and losses totaling 500 billion baht. At a 20% tax rate on gambling activities, the government could generate over 100 billion baht ($3 billion) annually, as per Thaksin’s estimation.

This recommendation comes as the cabinet recently approved the Entertainment Complex Business Act, which would legalize casinos and establish entertainment hubs. The proposed law still requires approval by Thailand’s House of Representatives.

Thaksin suggested a regulatory framework that includes a “passport-type” access system to monitor gambling activities and ensure compliance. He explained,

“We would have like a passport to control who can play.”

Phuket Proposed as Pilot for Crypto Payments

In addition, Thaksin Shinawatra called for Thailand’s Securities and Exchange Commission (SEC) to allow stablecoin trading and facilitate the use of asset-backed cryptocurrencies. He highlighted the potential benefits of adopting stablecoins, suggesting that they could improve economic transactions without introducing volatility.

Thaksin proposed Phuket as a test location for implementing crypto payments, due to the region’s potential for piloting digital currency initiatives. He stated,

“There will be no risk; it is just another currency in the world.”

Thailand’s Journey in Digital Currency Adoption

Thailand has already taken steps toward integrating digital currencies. In July 2024, the government distributed digital money worth $280 each to 45 million citizens, costing $13.8 billion. This initiative aimed to stimulate economic activity nationwide.

Moreover, the Bank of Thailand completed a retail central bank digital currency (CBDC) pilot in April 2024. While there are no immediate plans for an official CBDC launch, the central bank intends to use insights from the pilot to enhance payment systems and explore new areas of application.

Influence of Thaksin’s Political Legacy

Although Thaksin Shinawatra does not hold a position in the current administration, his influence remains significant. His daughter, Paetongtarn Shinawatra, serves as Thailand’s Prime Minister.

Thaksin cited Singapore’s model, where legalized gambling has contributed to tourism growth and GDP, as an example for Thailand to consider. However, the government has yet to announce a timeline for finalizing the proposed gambling reforms or implementing stablecoin trading regulations.