The CEO of Binance Thailand has stated that the digital assets market in Thailand is going through a transformation from retail to institutional, as the country strives to become the fintech hub of Southeast Asia. In an opinion piece for the Bangkok Post, the CEO, Nirun Fuwattananukul, described a recent regulatory move by the Thai Securities and Exchange Commission (SEC) as a crucial step towards the development of the country’s cryptocurrency landscape.
On October 9, the Thai securities regulator proposed rules that would allow institutional-grade mutual and private funds to invest in crypto products, including US-based spot crypto exchange-traded funds (ETFs). Fuwattananukul believes that this move will enable a diverse range of investment strategies and contribute to the wider acceptance of digital assets in mainstream finance.
Fuwattananukul emphasized that this regulatory development is not solely about legitimizing Bitcoin, but rather about creating a more mature ecosystem where traditional finance and crypto assets can coexist. He also suggested that it could lead to Thai financial institutions expanding their portfolios and exposure to crypto assets, positioning Thailand as a regional digital asset hub.
However, the new rules will primarily target high-net-worth investors, and retail access will be limited, according to the Thai SEC. Additionally, the use of crypto for payments is still prohibited by Thailand’s central bank.
Fuwattananukul revealed that the SEC is also considering new regulations for other crypto activities, although he did not provide further details. He noted that real-world asset (RWA) tokenization is emerging as a significant trend in Thailand, with traditional banks exploring the conversion of conventional assets such as bonds, real estate, and equities into blockchain-tradeable digital assets. Research by Tren Finance suggests that the RWA tokenization sector could experience 50 times growth by 2030.
In conclusion, Fuwattananukul believes that the SEC’s regulatory updates will ensure Thailand’s continued progression as a digital asset hub, providing a secure and dynamic ecosystem for all participants.
Despite the shift towards institutional focus, retail crypto trading remains popular in Thailand. Bitkub, the country’s largest crypto exchange and Binance Thailand’s competitor, reportedly has a daily trading volume of around $33.5 million.