Thailand’s Shift to an Institutional Crypto Market
Thailand’s cryptocurrency market is turning more institutional investor-driven than retail, a transformation which also aims to cement Thailand’s position as the regional center of Southeast Asia for digital assets, said Nirun Fuwattananukul, CEO of Binance Thailand.
Regulatory Changes Signal Maturity
In a recent opinion piece, Fuwattananukul commented that Thailand’s Securities and Exchange Commission proposed regulations on Oct. 9 to allow institutional-grade funds, including mutual and private funds, to invest in digital assets. This, he said, is a very important step in the maturation of the market, bringing diversified investment options that could support broader adoption of digital assets.
Institutional Investment Takes Center Stage
The new regulations mark a strategic pivot
In permitting high-net-worth institutional investors, the SEC is seeking to create an ecosystem in which traditional finance can blend with digital assets. The move signifies balancing on the thin line where the institution of institutions is encouraged while trying to avoid retail access to parts of high-risk investments.
Real-World Asset Tokenization on the Rise
Another factor driving RWA tokenization, in addition to the changing regulatory landscape, is a rapid rate of growth. More and more traditional assets, such as real estate and bonds, are being made into tokens, giving secure, blockchain-based investment opportunities. This is expected to grow very much-an increase of 50-fold, according to Tren Finance, by 2030.
Thailand’s Vision as a Regional Digital Asset Hub
This is, however, in line with Thailand’s ambitions to position itself as a leading fintech hub. According to regulators, the rules would foster safe participation for all players, including oversight of high-risk activities such as prohibiting crypto for payments.
Retail Participation Continues Despite Shift
Retail crypto trading is still booming in Thailand, as seen by exchanges such as Bitkub, which sees a daily volume of $33.5 million. However, the regulatory framework in place continues to encourage institutional growth toward the bedrock of a secure and mature ecosystem for both kinds of investors.
