Thailand’s cryptocurrency market is transitioning from retail trading to a more institutional-focused landscape, according to Nirun Fuwattananukul, CEO of Binance Thailand. This shift aligns with the country’s broader ambitions to position itself as a fintech hub in Southeast Asia.
In an opinion piece published by the Bangkok Post on October 25, Fuwattananukul described recent regulatory moves as a “vital step in the maturation of Thailand’s cryptocurrency landscape.” On October 9, the Thai Securities and Exchange Commission (SEC) proposed new rules allowing institutional-grade mutual and private funds to invest in crypto products, including U.S.-based spot crypto exchange-traded funds (ETFs).
Expanding Institutional Participation
The SEC’s decision to open the door to institutional investors reflects a growing effort to integrate digital assets into Thailand’s mainstream financial sector. “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,” Fuwattananukul explained.
This approach is about more than just legitimizing Bitcoin. It aims to create a mature ecosystem where traditional financial institutions and crypto assets coexist. This could pave the way for Thai financial institutions to diversify their portfolios by including digital assets, further solidifying Thailand’s status as a regional hub for digital assets.
Limited Access for Retail Investors
While institutional investment in crypto is expanding, retail access will remain limited under the new rules. The SEC’s focus is on high-net-worth investors and institutions, signaling a move away from the retail-centric market that has characterized Thailand’s crypto space. Moreover, using cryptocurrencies for payments continues to be outlawed by Thailand’s central bank, maintaining a cautious stance on crypto’s everyday financial integration.
Despite this institutional shift, retail crypto trading remains active in Thailand. The country’s largest crypto exchange, Bitkub, processes about $33.5 million in daily volume, according to CoinGecko, underscoring that retail demand is still strong.
Future of Crypto Regulation and Tokenization in Thailand
Fuwattananukul also hinted that the SEC is considering further regulations for other crypto-related activities, though he did not provide specific details. Additionally, real-world asset (RWA) tokenization is emerging as a significant trend in Thailand, with traditional financial institutions exploring the conversion of assets like bonds, real estate, and equities into blockchain-tradable digital assets. According to research by Tren Finance, the RWA tokenization market could grow 50-fold by 2030.
Fuwattananukul concluded that these regulatory updates are critical for Thailand to maintain its trajectory as a digital asset hub, ensuring a secure and dynamic ecosystem for both institutional and retail participants.
