Ex-Thai PM Thaksin Pushes Crypto Adoption and Sandbox Innovation
Former Thai Prime Minister Thaksin Shinawatra has urged the government to prioritize digital asset adoption and implement regulatory sandboxes to foster innovation. Speaking at the Intercontinental Hotel in Hua Hin, Shinawatra stressed that Thailand must adapt to the global shift toward cryptocurrencies to maintain economic competitiveness.
“There are already many cryptocurrencies. Some people say that in the future, we will have more currencies than countries,” he remarked, underscoring the importance of understanding and embracing this digital transformation. While he did not advocate for direct state investments in cryptocurrencies, Shinawatra encouraged Thailand to actively study and engage with the emerging digital asset landscape.
Thailand’s Regulatory Sandboxes Fuel Growth
Thailand’s Securities and Exchange Commission (SEC) has already taken strides toward crypto innovation. In August 2024, the SEC launched a regulatory sandbox, enabling select service providers to experiment with digital assets under relaxed regulatory oversight. This initiative aims to balance technological advancements with risk mitigation, fostering trust among investors and businesses.
Recent milestones further highlight Thailand’s evolving approach to crypto:
- Kasikornbank became the country’s first licensed crypto custodian in September 2024, offering secure storage for businesses operating in digital assets.
- Institutional Adoption: On October 9, the SEC proposed allowing mutual and private funds to access cryptocurrency investments, signaling growing institutional interest in digital assets.
- Cross-Border Initiatives: In collaboration with the Hong Kong Monetary Authority (HKMA), the Bank of Thailand launched tests for tokenized settlements under HKMA’s Project Ensemble.
Digital ETFs and Crypto-Friendly Policies
The Thai government is making significant progress in supporting institutional crypto investment. In June 2024, One Asset Management (ONEAM) secured approval to launch Thailand’s first Bitcoin ETF, named the One Bitcoin ETF Fund of Funds. Exclusively available to institutional and high-net-worth investors, the fund represents a major step toward mainstream adoption of digital assets.
Additionally, the SEC introduced reforms to support tokenized investment opportunities, easing restrictions on retail investors. Previously, retail participants were capped at 300,000 baht per offering for real estate-backed ICOs and infrastructure-backed ICOs. The updated rules allow broader investment access while enhancing custodial wallet services to protect digital assets.
Why Crypto Matters for Thailand
Shinawatra’s advocacy for crypto adoption aligns with Thailand’s growing emphasis on economic modernization. The benefits of embracing cryptocurrencies include:
- Boosting Innovation: Regulatory sandboxes create a platform for startups to develop blockchain solutions.
- Institutional Confidence: Secure storage options, ETFs, and updated policies attract high-value investors.
- Global Competitiveness: Partnerships, like those with HKMA, position Thailand as a key player in regional crypto development.
Thailand’s proactive stance on digital assets, coupled with Shinawatra’s vision for innovation, could pave the way for long-term economic growth and a robust digital ecosystem.
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