Thailand’s Securities and Exchange Commission (SEC) is exploring significant developments in its cryptocurrency policies, including the potential approval of spot Bitcoin exchange-traded funds (ETFs) and stablecoin proposals, while simultaneously cracking down on Polymarket for alleged illegal gambling activities.
Spot Bitcoin ETFs Under Review
For the first time, Thailand is considering permitting spot Bitcoin ETFs to list on local exchanges. On January 14, SEC Secretary-General Pornanong Budsaratragoon announced the regulator’s assessment of whether retail and institutional investors should be allowed to trade spot Bitcoin ETFs domestically.
“Like it or not, we must move forward with the global adoption of cryptocurrencies,” Pornanong said, as reported by Bloomberg. “Our role is to adapt and ensure investors have more crypto asset options with proper safeguards.”
Currently, Thai investors can only access Bitcoin ETFs indirectly. In June 2024, One Asset Management introduced a fund-of-funds that offers exposure to overseas spot Bitcoin ETFs. However, direct listings of Bitcoin ETFs in Thailand remain unavailable.
Stablecoins and Bitcoin Sandboxes
The SEC is also evaluating the introduction of stablecoins backed by corporate bonds, allowing firms with strong credit ratings to issue these assets. The initiative aims to increase access to debt markets for a broader audience.
Additionally, Thaksin Shinawatra, the de facto leader of the ruling Pheu Thai Party, has proposed launching government bond-backed stablecoins for both retail and institutional investors. Thaksin also suggested creating a Bitcoin sandbox in Phuket to facilitate tourism-related transactions, aligning with the country’s broader efforts to integrate cryptocurrency into its economy.
According to the 2024 Crypto Adoption Index by Chainalysis, Thailand ranks 16th globally in cryptocurrency adoption, with strong participation in retail centralized services (15th) and decentralized finance transaction volumes (19th).
Polymarket Faces Crackdown in Thailand
While advancing its crypto policies, Thailand’s SEC is also cracking down on illegal cryptocurrency activities. On January 14, the Technology Crime Suppression Division (TCSD) announced plans to propose shutting down Polymarket, a blockchain-based prediction market.
Lieutenant General Trairong Phiwpaen, TCSD commander, described Polymarket as an unlicensed online gambling platform in violation of Thai law. The platform allows users to place bets on various topics, including politics, sports, and entertainment, using cryptocurrency.
“Polymarket’s use of cryptocurrency for trading and betting complicates law enforcement due to its anonymous and cross-border nature,” Trairong stated.
Thailand joins a growing list of countries taking action against Polymarket:
• Singapore banned the platform on January 12, citing unlicensed gambling concerns.
• France launched an investigation into its compliance with local laws in November 2024, prompting Polymarket to withdraw.
• Taiwan became the first country to ban the platform, arresting 17 individuals for betting on a presidential election.
Polymarket’s Continued Activity
Despite mounting restrictions, Polymarket remains active globally. According to Dune Analytics, the platform recorded $515 million in trading volume in just the first 15 days of 2025. Its Super Bowl Championship 2025 market alone saw trading volumes exceed $1.12 billion, highlighting the platform’s enduring appeal despite legal hurdles.
Conclusion
Thailand’s dual approach to cryptocurrency regulation reflects a delicate balancing act between fostering innovation and ensuring compliance with local laws. By considering the approval of spot Bitcoin ETFs and stablecoin initiatives, the country aims to position itself as a forward-thinking hub for digital assets. At the same time, the crackdown on platforms like Polymarket underscores its commitment to maintaining legal and financial safeguards in the evolving crypto landscape.
