Crypto Market Maturing in Thailand

Thailand's digital asset market is shifting from retail to institutional investment as the nation sets its sights on becoming Southeast Asia's fintech hub, according to Binance Thailand CEO Nirun Fuwattananukul.

In a 25 October piece for the Bangkok Post, Fuwattananukul called a recent regulatory proposal by Thailand's SEC a "crucial step" in advancing Thailand's crypto ecosystem.

The 9 October proposal aims to allow institutional mutual and private funds to invest in crypto products, including US-based spot crypto exchange-traded funds (ETFs), fostering a more mature landscape where traditional finance and crypto assets can coalesce.

Fuwattananukul noted:

“By allowing more institutional funds to participate, the SEC is enabling a diverse range of investment strategies and helping digital assets gain broader acceptance in the mainstream.”

This move, Fuwattananukul explains, goes beyond "legitimising Bitcoin" and could enable Thai financial institutions to diversify portfolios and engage in digital assets, positioning the country as a regional digital asset hub.

However, access will be limited to high-net-worth investors, as retail investors remain restricted, and using crypto for payments remains prohibited by the central bank.

The SEC is reportedly evaluating further regulations for other crypto activities, though specifics were not disclosed.

RWA Fast Becoming Major Trend in Thailand

Thailand is also witnessing a growing trend in real-world asset (RWA) tokenisation, as traditional banks explore converting assets like bonds, real estate, and equities into blockchain-based digital assets.

According to Tren Finance, the RWA tokenisation market could expand fiftyfold by 2030, underscoring its transformative potential.

Fuwattananukul highlighted that the SEC's regulatory updates are crucial in positioning Thailand as a secure and dynamic digital asset hub for both institutional and retail participants.

Despite the institutional shift, retail crypto trading remains robust across the country.