Thailand Securities and Exchange Commission (SEC) has designated Tether stablecoin USDT as an approved cryptocurrency. The stablecoin issuer announced this on March 10, noting that it will boost USDT use in the country.
According to an official announcement from Tether, regulated exchanges in Thailand can now list USDT, opening the way for the stablecoin to be used in payments. The Thai SEC’s approval decision follows a public feedback phase that ended in February.
At the time, the SEC asked for public opinion on its decision to include USDT and USDC on its approved list of cryptocurrencies. The feedback from the public was largely positive and instrumental to the approval. With the inclusion, USDT and USDC join a list that already includes Bitcoin, Ethereum, Ripple XRP, Stellar XLM, and any other crypto used by the Bank of Thailand for its programable payment sandbox.
By including the two biggest stablecoins, regulators in Thailand want to give digital asset issuers, ICO portals, and regulated exchanges in the country more flexibility while also allowing investors more choices.
Tether lauds Thai SEC approval
Tether has described the regulatory recognition of USDT as a milestone moment for digital assets in the region while noting its potential impact on transactions in the country. The firm said that it can now integrate its USDT seamlessly into Thailand’s financial services.
It said:
“The regulator’s recognition of USD₮ as an approved cryptocurrency marks a pivotal moment in the evolution of digital assets in the region and represents a major step toward clarifying and enhancing Thailand’s regulatory framework.”
Meanwhile, Tether CEO Paolo Ardoino said the firm will continue looking for ways to improve the adoption of stablecoins in Thailand and contribute to the country’s digital assets industry.
He said:
“We highly value the Thai market and are continuously exploring ways to enhance our services and offerings. Our priority is to provide users in Thailand with a secure, transparent, and reliable stablecoin experience.”
Ardoino’s statement shows how significant this approval is for Tether. The largest stablecoin issuer with over $142 billion in its USDT market cap has faced its fair share of regulatory concerns, with many considering it not to be regulatory-compliant.
There have been concerns that this could hurt its dominance in the long term, especially as more countries establish their domestic stablecoin laws. However, these concerns might have been overexaggerated, with Thailand now approving it and the European Securities and Markets Authority (ESMA) confirming that the European Union Market in Crypto Assets (MiCA) regulation does not ban USDT and will only restrict its trading.
Thailand Strengthens Crypto Regulations
Meanwhile, the move also highlights Thailand’s pro-crypto efforts. Southeast Asian countries are among the top countries in terms of crypto adoption, with USDT accounting for 40% of its crypto trading volume. In recent months, it has updated its crypto regulatory framework.
Some updates include removing the restriction on how much retail investors can invest in digital assets backed by infrastructure or real estate and requiring that only reputable publicly listed companies should set up entities to manage custodial crypto wallets.
Former prime minister Thaksin Shinawatra has also called for financial institutions to become more open to cryptocurrencies, particularly stablecoins. Despite its clear openness to crypto, the country has not changed its stance of rejecting spot Bitcoin ETF (exchange-traded funds).
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