Thailand Approves Tether’s USDT for Regulated Exchanges

ByMason Drake

Thailand’s Securities and Exchange Commission (SEC) has granted regulatory approval to Tether’s USDT stablecoin, allowing it to be listed on licensed exchanges across the country. The landmark decision, which takes effect on March 16 as part of updated digital asset regulations, marks a significant step forward for cryptocurrency adoption in one of Asia’s largest markets and provides Tether with important regulatory recognition in the region.

The approval gives USDT access to Thailand’s growing crypto market, which ranks among the top 20 globally in cryptocurrency adoption. Tether’s stablecoin already accounts for approximately 40% of trading volumes in the country, according to Crypto.news.

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Expanding the List of Approved Cryptocurrencies

USDT joins a select group of just five other cryptocurrencies previously approved for trading in Thailand: Bitcoin, Ether, XRP, XLM (Stellar Lumens), and certain tokens being tested for settlement by the Bank of Thailand. According to Cointelegraph, the SEC’s announcement came after soliciting public feedback on proposed regulatory changes that were finalized in February.

The regulatory green light means USDT can now be adopted by digital asset businesses and potentially used as a payment rail within Thailand. This expansion of approved digital assets aligns with growing calls within the country to legitimize cryptocurrency usage and promote stablecoin adoption to boost domestic revenue.

Circle’s USDC has also reportedly received approval alongside USDT, though this has received less attention in official announcements. The inclusion of major stablecoins in Thailand’s regulatory framework represents a significant shift in the country’s approach to digital assets.

Tether’s Response and Strategic Importance

Tether CEO Paolo Ardoino welcomed the decision in a March 10 press release, emphasizing the company’s commitment to providing “a secure, transparent, and reliable stablecoin experience” for users in Thailand. “We are committed to supporting the long-term success and adoption of stablecoins in Thailand and look forward to contributing to the growth of the country’s digital asset ecosystem by fostering a strong and sustainable stablecoin infrastructure,” Ardoino stated.

The approval comes at a strategic time for Tether, which recently hired Simon McWilliams as chief financial officer to address lingering audit concerns. McWilliams will reportedly drive the company toward completing a full financial audit, potentially addressing ongoing scrutiny over Tether’s operations and reserves backing the stablecoin.

Following the crypto market crash of 2022, Tether began releasing quarterly attestations verified by BDO Italy, an independent consulting firm. However, some critics remain skeptical, calling for a comprehensive audit rather than attestations. The new CFO appointment and regulatory approvals like Thailand’s may help Tether address some of these transparency concerns.

Thailand’s Evolving Crypto Strategy

Thailand’s approval of USDT follows several initiatives aimed at carefully expanding the country’s cryptocurrency framework. In August 2024, Thai authorities created a regulatory sandbox allowing select service providers to experiment with cryptocurrencies under controlled conditions. This approach has enabled regulators to gather data and experience before implementing broader regulatory changes.

The country has shown increasing interest in cryptocurrency developments, with reports indicating Thailand is also considering approval for spot Bitcoin ETFs. Simultaneously, Thai regulators have maintained oversight by cracking down on certain platforms like Polymarket that operate outside their regulatory framework.

“There have been growing calls within Thailand to legitimize cryptocurrency usage and urge stablecoin adoption to boost domestic revenue,” Cointelegraph noted, highlighting the economic considerations behind the regulatory shift. This balanced approach reflects Thailand’s efforts to embrace cryptocurrency innovation while maintaining appropriate safeguards.

The Growing Importance of Stablecoins

Stablecoins like USDT have gained significant traction globally, particularly in emerging markets where they offer an alternative to traditional financial services. A December report by blockchain analytics firm Chainalysis described stablecoins as a “transformative” use case for cross-border payments and remittances, noting that in markets across Sub-Saharan Africa, using stablecoins for remittances is approximately 60% cheaper than traditional methods.

According to venture capital firm a16z Crypto, 28.5 million unique stablecoin users sent over 600 million transactions in December alone. While this represents just a fraction of the global payments industry’s 3.4 trillion transactions, the growth trajectory remains significant.

Tether’s USDT dominates the stablecoin market, accounting for just over 63% of the nearly $230 billion total market capitalization, according to data from DeFiLlama. The Thailand approval strengthens Tether’s position as the leading stablecoin globally and potentially opens doors for similar regulatory recognition in other jurisdictions.

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Looking Ahead

As Thailand’s updated digital asset regulations take effect on March 16, industry observers will be watching closely to see how USDT integration impacts the country’s cryptocurrency ecosystem. The approval could potentially accelerate stablecoin adoption for both trading and payment purposes in Thailand, creating a model for other regulators in the region considering similar approaches.

For Tether, the Thai regulatory approval represents an important validation of its efforts to work within regulatory frameworks while expanding its global footprint. As stablecoins continue to gain recognition for their utility in cross-border payments, remittances, and trading, regulatory clarity in key markets like Thailand becomes increasingly valuable.

The development also highlights the growing acceptance of stablecoins by traditional financial regulators, potentially signaling a new phase in the integration of cryptocurrencies into the broader financial system. As more countries develop clear regulatory frameworks for stablecoins, their utility and adoption are likely to continue expanding beyond crypto trading into mainstream financial applications.

Mason Drake

Mason has been covering the exciting and fast-pasted crypto space since the early days of Bitcoin. From decentralized finance to NFT trends, he provides deep analysis on where the industry is headed and what it means for investors.

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