Thailand’s Crypto Market Shifts from Retail to Institutional: Binance Thailand CEO
Date: 2024-10-25 Author: Henry Casey Categories: IN WORLD
The cryptocurrency industry in Thailand is on the cusp of major changes, with regulatory moves by the Securities and Exchange Commission of Thailand (SEC) helping to strengthen the institutional framework, Binance Thailand CEO Nirun Phuwattananukol wrote in an article for the Bangkok Post on October 25.
On October 9, the Thai regulator proposed rules that would allow institutional and private funds to invest in crypto products, such as exchange-traded funds (ETFs) based on U.S. crypto assets.
“By allowing institutional investors, the SEC is facilitating broader investment strategies and supporting the integration of digital assets into traditional financial flows,” Phuwattananukol said.
This move, he said, is aimed not only at legitimizing Bitcoin, but also at creating a more mature ecosystem where traditional financial instruments and crypto assets coexist. In the long term, it will also allow Thai financial institutions to expand their portfolios, thereby strengthening Thailand's position as a regional digital hub.
However, the new financial products will be available primarily to large private investors and institutions, limiting access for the mass consumer. In addition, the use of cryptocurrencies for payments remains prohibited by the Central Bank of Thailand.
In addition to these measures, the SEC is considering introducing additional regulations for other types of crypto assets, but the details have not yet been disclosed.
Real asset tokenization (RWA) is gaining popularity in Thailand. Banks are exploring the possibility of converting traditional assets such as bonds, real estate, and stocks into a digital format on the blockchain. According to Tren Finance, this sector could grow 50 times by 2030.
Phuwattananulkul concluded that the SEC's innovations create the conditions for Thailand to become a digital hub with a safe and vibrant ecosystem for all market participants.
Despite the increasing focus on institutional investors, retail cryptocurrency trading remains popular in the country. For example, the daily trading volume on Thailand's largest crypto exchange Bitkub, which competes with Binance Thailand, is about $33.5 million, according to CoinGecko.
