Thailand's Crypto Market Shifts Focus from Retail Investing, Says Binance Thailand CEO
StreamYardThe crypto scene in Thailand has changed a lot recently as it's shifting from being a retail-focused market to including institutional investors as well, which is a trend that’s been growing worldwide. This shift has been mostly enabled by more favorable regulations and the various benefits that new and established crypto projects offer.
When it comes to regulations, Binance’s Thailand CEO, Nirun Fuwattananukul, has highlighted how recent regulations in Thailand have allowed crypto assets to be offered to mutual funds, which has encouraged institutional investors to gain exposure to these virtual currencies. Let us see what this will mean not just for this country but for the global market at large below.
Regulatory Shifts in Thailand
On October 9, Thailand’s Securities and Exchange Commission (SEC) proposed a new set of regulations that will allow institutional-level mutual and private funds to invest in various crypto products. These might include the newly launched Bitcoin and Ethereum ETFs (exchange-traded funds) that have raised hopes that other cryptocurrencies will follow suit.
Regulatory shifts in Thailand may be taking place now as crypto is becoming more popular in the country and globally. In fact, already over 560 million people own and hold crypto assets worldwide. Additionally, investors are constantly looking for new promising crypto projects to buy into with many turning to pre-sales to get good deals. Pre-sale coins are often sold for less before a project is officially listed. Crypto Expert Sanghee Yun explains that the pre-sale coin ranking selected by Crypto News outlines promising coins for investors with high potential.
What has made investors look forward to crypto ETFs is that, according to Yun, many of these coins can offer them a passive income through staking rewards and yield farming. By proposing the recent regulatory changes, Thailand's government hopes the crypto market will mature by gaining more legitimacy in the country. They are also aiming to shift trading patterns from speculative, retail-dominated investments to more stable, institutionally driven ventures.
A Broader Trend Toward Institutional Investment
Institutionalization has not been a trend reserved for Thailand’s crypto market. That’s because many countries like the United States, Singapore, and the United Arab Emirates have also brought similar changes to their crypto ecosystems by regulating this sphere to increase institutional interest.
An example of this is how the US has introduced a regulatory framework that has included ETFs and stricter custody requirements. This is what has drawn investment giants like BlackRock and VanEck to offer their own crypto ETFs, which have become popular among institutional investors.
Singapore has also made adjustments to its regulations to draw innovative crypto projects into operating there. The country’s Monetary Authority (MAS) has done this by introducing a licensing framework that governs crypto service providers, so institutional players who are looking for a stable regulatory environment to invest in can choose Singapore.
Similarly, the UAE has also made strides in positioning itself as a crypto-friendly jurisdiction. This nation has managed to do this with initiatives in Abu Dhabi and Dubai that provide more support for institutional blockchain and crypto businesses.
For example, Dubai’s Virtual Assets Regulatory Authority (VARA) has introduced a robust licensing framework for exchanges and funds. This has made the city attractive to many international investors looking for a country with clear regulations for crypto assets.
Market Impact and Future Implications
What this shift toward more institutional participation will mean for the crypto market’s future is that speculative volatility that’s synonymous with retail-driven markets will decline. What makes us say this is that the crypto ecosystem​ will be more resistant to sharp drops and spikes in digital asset values.
Also, should Thailand manage to establish clear regulations, the country could be poised to become the next crypto hub in Asia. This will help the nation to attract more foreign investment, which will potentially increase liquidity and improve price stability in its crypto market.
