Crypto volumes in Thailand have shot up by 588% in volumes. This shows that crypto assets are becoming popular in the country with regulators estimating that the rising numbers have been recorded since November 2020.
Statistics shows that crypto adoption is highly rising in Thailand. This is according to the Thailand Securities and Exchange Commission, which stated that since November 2020, there has been a 600% increase in crypto volumes in the domestic market. Furthermore, the data revealed that domestic crypto volumes from $574.5 million in November to $3.96 billion, which is the current volume.
The co-founder of Bitkub, which is the top exchange platform in Thailand, stated that stated that the trading volumes at the exchanger had shot upwards by 40% between the first two months of 2021. Bitkub is a platform that has more than 300,000 customers and it is accessed by about 90% of the people who trade in crypto in the country.
Despite the volumes that are being experienced on licensed exchange platforms, the number of volumes in peer-to-peer transactions seem to be low. The peer-to-peer trading volumes for the month of March in the country dropped from $950,000 to around $600,000.
Impact of the volume spike on Thai’s crypto market
According to the Thailand Securities and Exchange Commission, new traders needed to gain experience into the crypto market before they can access it. This will be done through a training course that will be made accessible to new traders teaching about the best practices in trading crypto assets. In March, the SEC had stated that it would require crypto traders in the domestic market to have a minimum annual income of $32,000 for them to be allowed to trade.
Thailand is also experiencing an increased popularity of decentralized finance. This is according to a research conducted that revealed that Thailand was the second country in the world to receive a high amount of traffic regarding DeFi trading. Report findings have also revealed that Thailand was among the best economies in the world that supported DeFi platforms.
This development comes at a time when Thailand is in the process of developing the digital baht, which is a Central Bank Digital Currency. According to the president of Thailand’s Central Bank, the digital baht will be tested by 2021. This move has placed Thailand at the top of the pioneer economies that will be launching a digital currency controlled and regulated by the Central Bank.