The Thailand SEC has approved Tether’s USDt and Circle’s USDC for trading on regulated exchanges. This aims to boost cryptocurrency legitimacy and revenue. The stablecoins will be part of a limited set of approved cryptocurrencies in the country, facilitating both trades and payment systems. Stablecoins are recognized for reducing costs in remittances, particularly in emerging markets, and are rapidly gaining traction.
The Thailand Securities and Exchange Commission (SEC) has granted approval for Tether’s USDt (USDT) and Circle’s USDC (USDC) to be utilized in cryptocurrency trading. This decision enables these stablecoins to be listed on regulated exchanges throughout Thailand. The approvals were announced last week following public feedback on regulatory amendments that will be effective from March 16, 2023.
This initiative is part of Thailand’s ongoing efforts to legitimize cryptocurrency utilization, particularly to enhance stablecoin adoption for increasing domestic revenue. This follows the establishment of a regulatory sandbox in August 2024, which allows selected service providers to explore cryptocurrency applications in a controlled environment. The newly approved stablecoins join five existing cryptocurrencies permitted for trading, including Bitcoin (BTC), Ether (ETH), XRP (XRP), Stellar Lumen (XLM), and additional cryptocurrencies under testing for settlement by the Bank of Thailand.
The approval also enables USDt to be used by digital asset entities and as a payment method within the country, as announced by Tether on March 10. Stablecoins are being seen as practical options for remittances, particularly in developing economies. A December report from Chainalysis highlighted the transformative potential of stablecoins for international transactions and pointed out that remittances utilizing stablecoins are significantly cheaper than conventional methods, with costs in Sub-Saharan Africa being 60% lower.
Venture capital firm a16z Crypto indicated that by December, there were 28.5 million unique stablecoin users who executed over 600 million transactions, although this still constitutes a small portion of the global payments industry, valued at approximately 3.4 trillion transactions. At present, the circulating supply of stablecoins stands at nearly $230 billion, with Tether’s USDt making up over 63% of that total.
The approval of USDt and USDC in Thailand marks a significant step towards integrating stablecoins into regulated cryptocurrency trading. This move reflects not only the country’s commitment to enhancing its digital financial ecosystem but also the broader global trend of increasing stablecoin adoption for payments and remittances. As stablecoins provide a more cost-efficient alternative for transactions, especially in emerging markets, their role in the financial landscape is likely to expand significantly in the coming years.
Original Source: cointelegraph.com
