Thailand Crypto Market Becomes Institution Focused, Says Binance CEO

by

As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed the evolution of traditional finance (TradFi) and its gradual integration with the digital asset ecosystem. The recent move by the Thai SEC to encourage institutional participation in cryptocurrency is a significant step towards maturing Thailand’s crypto landscape.

The CEO of Binance Thailand recently shared that the Thai cryptocurrency sector is moving its primary attention away from individual investors, aiming instead at institutional investors. This change comes as Thailand makes strategic steps towards establishing itself as a leading fintech center in Southeast Asia.

In his latest post in a local publication Bangkok Post, Binance Thailand CEO Nirun Fuwattananuku stated that the Thai Securities and Exchange Commission (SEC) has taken a major regulatory move “in the maturation of Thailand’s cryptocurrency landscape”.

In the first week of October, specifically on the 9th, the Thai Securities and Exchange Commission suggested new regulations. These rules would enable domestic mutual fund intermediaries to access regulated financial products. Consequently, Thai mutual fund managers now have the opportunity to invest in Bitcoin ETFs traded on US exchanges, as well as other crypto ETFs.

Granting access to more institutional investors by the SEC broadens the types of investment approaches available and facilitates wider recognition and acceptance of digital assets within mainstream finance.

The head of Binance Thailand views this action as extending beyond the authorization of Bitcoin ETFs alone. He emphasized that this progress isn’t solely about validating Bitcoin, but rather fostering a “mature and integrated” environment by bridging the gap between traditional finance (TradFi) and cryptocurrency spheres.

He added that this will pave the way for Thai financial institutions to expand their crypto portfolios while positioning “Thailand as a regional digital asset hub”.

Thai SEC Encouraging Institutional Participation in Crypto

Previously, the Thailand Securities and Exchange Commission (SEC) has emphasized that the new investment funds are aimed at wealthy individuals, excluding retail investors. Additionally, due to restrictions set by the Thai central bank, daily cryptocurrency transactions are currently not supported in Thailand.

In a vague response, Fuwattananukul hinted that the SEC might be considering more extensive regulations for different cryptocurrency operations beyond their current plan.

In addition, it was mentioned that there’s a growing trend in Thailand for Real-World Asset Tokenization (RWA). Established financial institutions are considering transforming traditional assets such as real estate, bonds, and stocks into assets tradeable on blockchain platforms. According to Ten Finance’s research, the RWA market is predicted to expand 50 times by 2030.

In his concluding note, Fuwattananukul wrote:

The Securities and Exchange Commission’s regulatory updates help sustain Thailand’s advancement as a leading digital asset center. This ensures a safe and vibrant environment for everyone involved in the digital asset ecosystem.

In Asia, Thailand stands out as one of the prominent crypto trading regions, boasting robust participants such as Bitkub, alongside Binance.

Read More

2024-10-25 10:51