Thailand Expands Crypto Regulations: USDT and USDC Approved for Trading

On March 16, 2025, Thailand‘s Securities and Exchange Commission (SEC) will implement a new regulatory framework that officially includes USDT (Tether) and USDC (Circle) in the list of approved cryptocurrencies for trading on digital asset exchanges. Previously, only a limited number of digital assets—such as Bitcoin (BTC), Ethereum (ETH), XRP, Stellar (XLM), and certain tokens used within Thailand’s banking settlement system—were recognized as compliant by regulators.

This decision follows a public consultation in February, where the majority of respondents expressed support for adding these two stablecoins to Thailands regulatory framework. With a combined market capitalization of over $200 billion, USDT and USDC play a crucial role in global crypto markets, particularly in trading and payments. By approving these stablecoins, Thailand aligns itself with the global trend of recognizing stablecoins as an integral part of the cryptocurrency ecosystem.

While Thailand is opening up to stable coins, the regulatory landscape in Europe presents a different challenge for USDT and USDC. With the Markets in Crypto-Assets (MiCA) regulation coming into effect, stablecoin issuers in the European Union must comply with stricter transparency, oversight, and reserve requirements. MiCA mandates that issuers maintain adequate reserves and disclose them regularly, and it also imposes transaction volume limits to mitigate systemic risk.

Tether‘s USDT has faced criticism over its historical lack of transparency regarding reserve assets, making it more difficult to meet MiCA’s strict reporting requirements. Additionally, due to its high transaction volume, USDT could be subject to tighter regulatory scrutiny in Europe. Several exchanges, including OKX and Kraken, have already restricted USDT trading pairs, and Coinbase has begun delisting stablecoins that do not comply with MiCA. While Tether has yet to make an official statement, reports indicate that the company is actively exploring alternative strategies to navigate these regulatory challenges.

In contrast, USDC appears to be adapting more smoothly to the European regulations. Circle, the issuer of USDC, has already positioned itself as a compliant entity in multiple jurisdictions and has introduced a euro-backed stablecoin, EURC, to capitalize on potential shifts in the European market. If Tether is forced to exit the European market due to regulatory constraints, euro-backed stablecoins like EURC may gain traction as a preferred alternative. However, the global dominance of USD-backed stablecoins remains undisputed, and any regional restrictions could risk isolating Europe from broader crypto liquidity flows.

As of March 11, 2025, Tether‘s USDT remains the largest stablecoin by market capitalization, reaching $143.28 billion. Over the past 30 days, its market capitalization has grown by $6.3 billion, demonstrating its continued dominance despite regulatory pressures. According to DefiLlama, USDT currently holds a 63% market share in the stablecoin sector, while USDC’s share has risen to 25.6%, up from 19.4% a year ago.

Thailands recognition of USDT and USDC comes at a time when regulatory environments around the world are rapidly evolving. As some regions embrace stablecoins, while others impose tighter restrictions, global market dynamics are shifting. For now, USDT remains the dominant force in stablecoin transactions, while USDC is steadily increasing its presence, particularly in compliant markets like Europe.