Originally published on: December 14, 2024
During a recent lecture at the Intercontinental Hotel in Hua Hin, former Prime Minister of Thailand, Thaksin Shinawatra, emphasized the importance of Thailand studying cryptocurrencies to stay ahead on the global stage. While he didn’t advocate for the immediate purchase of digital assets, Shinawatra stressed the necessity of understanding the digital economy in light of the ongoing trend towards digitization.
With looming threats of new trade tariffs and unorthodox economic measures like using Bitcoin to pay off national debt, the former Prime Minister highlighted the urgency for Thailand to explore and embrace the digital economy. As the number of digital asset categories continues to grow, surpassing the total number of countries in existence, it becomes increasingly crucial for Thailand to keep pace with these advancements to maintain its relevance.
In a step towards this direction, Thailand’s Securities and Exchange Commission (SEC) introduced a regulatory sandbox in August 2024, allowing selected service providers to experiment with digital assets within a relaxed regulatory environment. This initiative provides businesses with a safe space to innovate without the fear of legal repercussions.
Furthermore, Thailand’s second-largest bank, Kasikornbank, made strides by becoming the country’s first licensed crypto custodian in September 2024, catering to the needs of digital asset businesses. Additionally, Thailand’s SEC proposed granting mutual and private funds access to crypto investments in a move towards institutional crypto adoption, signaling a shift in the country’s crypto market landscape.
In collaboration with the Hong Kong Monetary Authority, the Bank of Thailand also initiated tests for tokenized cross-border settlements under the HKMA’s Project Ensemble in October 2024, further solidifying Thailand’s commitment to embracing the digital economy.
By staying attuned to the evolving crypto landscape and fostering a conducive environment for digital asset innovation, Thailand can position itself as a frontrunner in the global digital economy, ensuring its relevance and competitiveness in the years to come.