Thailand’s new PM: Quiet on crypto, but her legacy speaks volumes

As a seasoned observer of the dynamic world of digital finance and cryptocurrencies, I have closely followed Thailand’s progressive strides in embracing these innovative technologies. Having seen governments around the globe grapple with the complexities of this rapidly evolving landscape, I must admit that Thailand stands out as a beacon of proactive policy-making in this space.

Is Paetongtarn Shinawatra’s rise to power indicative of a new era of crypto-friendliness in Thailand, or does her lack of comment on the matter suggest a cautious approach?

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Who is the new Thailand PM, and why does it matter?

Thailand has created a new chapter in its history by choosing its youngest Prime Minister yet – Paetongtarn Shinawatra, an unseasoned politician who is just 37 years old and hails from one of the country’s most powerful and contentious political clans.

Paetongtarn is Thaksin Shinawatra’s daughter, who served as the Prime Minister from 2001 to 2006. During her term, there was significant economic advancement along with intense political discord.

Thaksin’s political strategies garnered him intense loyalty as well as strong opposition, ultimately resulting in his forced resignation during a military takeover in 2006 and eventual departure from the country in 2008.

After a 15-year absence, Thaksin reappeared in Thailand last year, generating discussions about his ongoing impact on the country’s political landscape. The Thaksin influence remains significant.

Yingluck Shinawatra, the aunt of Paetongtarn, previously held the position of Prime Minister from 2011 to 2014; however, she was forced out in a coup and subsequently left the country.

Currently, Paetongtarn has taken on a new position, making her the third family member to occupy Thailand’s highest political post. This is due to the enduring impact and prominence of the Shinawatra clan within Thai politics.

After the Thailand Constitutional Court dismissed Srettha Thavisin for violating ethics by appointing a minister with a history of trying to bribe a judge, Paetongtarn took over as the new figure in power.

It’s widely anticipated that Paetongtarn could guide Thailand towards adopting a more welcoming stance on cryptocurrencies. Her father, Thaksin, is renowned for his pro-cryptocurrency views, particularly Bitcoin (BTC), and it’s thought his influence could propel Thailand towards accepting digital currencies.

Nevertheless, even though there have been numerous assumptions about her views, Paetongtarn has yet to clearly express her position on cryptocurrencies since she assumed office.

In simpler terms, Paetongtarn’s vision is that Thailand will become a location where individuals feel empowered to imagine, innovate, and mold their own destinies. This raises the question about how this ambition could influence the future of cryptocurrency in Thailand.

Will Paetongtarn follow in her father’s crypto footsteps?

As a researcher, I’ve observed that since taking office, Paetongtarn has been relatively quiet on the topic of cryptocurrencies. However, her father’s public affinity for digital assets has sparked curiosity and speculation among many, suggesting a possibility that she may continue his interest in this field.

Back in 2019, I recall reading an article on Coin Rivet where Thaksin drew a parallel between the potential of blockchain and the early stages of the internet, foreseeing it as a catalyst for creating a “new group of affluent individuals” among young, forward-thinking entrepreneurs who were ready to seize its opportunities.

He highlighted how blockchain could transform industries by making business practices more transparent and efficient, using a Rwandan coffee company that utilized blockchain to connect local suppliers with high-end retailers as an example.

As an analyst, I can affirm that my interaction with the cryptocurrency realm extends beyond mere rhetoric. My network spans deeply into Thailand’s fintech and digital currency circles, a fact underscored by my frequent meetings with influential figures within this sector.

In May 2024, according to the Bangkok Post, Thaksin had a meeting with Worawat Narknawdee, a prominent figure in cryptocurrency investment and one of Thailand’s early Bitcoin miners. This encounter strengthened Thaksin’s supportive stance towards cryptocurrencies.

A fresh social media post, gaining popularity, hints at Thaksin’s crypto involvement by displaying four distinct photos of him in his office. Each photo features a clock in the backdrop that indicates Bitcoin’s value during different timeframes.

The pictures, possibly snapped at various points in time, have sparked discussions implying that Thaksin keeps a close eye on Bitcoin’s market fluctuations, which suggests a strong interest and perhaps substantial investment in the cryptocurrency realm.

As a researcher, I’ve extensively studied Thaksin’s stance on cryptocurrency, which is quite clear. On the other hand, Paetongtarn’s viewpoint remains undeclared in public, creating an intriguing space for speculation and discussion about the potential path she might choose regarding this digital currency matter.

Thailand’s strides toward crypto integration

Thailand is taking steps to integrate cryptocurrency within its financial structure, with one significant action being the introduction of the Digital Asset Regulatory Sandbox.

Commencing on August 9, this sandbox has been established for “encouraging trials and fostering innovative ideas relevant to the smooth delivery of digital asset services within a practical setting,” as stated by the Thai Securities and Exchange Commission.

This system essentially provides a space for users to experiment with different cryptocurrency-based services following adaptable guidelines, fostering creativity and innovation, all the while ensuring that these services are developed within a secure and reliable ecosystem.

The sandbox focuses on six main areas: exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers. 

For participation, companies must demonstrate robust credentials, such as sufficient capital resources and effective management structures, thereby allowing only well-established entities to explore these innovative technologies.

The construction of this sandbox demonstrates a consistent pattern of cryptocurrency-favorable policies by the Thai administration. In recent times, Thailand has gradually implemented steps aimed at fostering its cryptocurrency industry’s expansion.

In March 2024, the Thai government granted an exemption from taxes on income earned through investment tokens in the crypto market. This move was intended to increase Thailand’s competitive edge in the field of digital finance.

Shortly after, the Securities and Exchange Commission (SEC) gave its approval for Thailand’s inaugural Bitcoin Spot Exchange-Traded Fund (ETF), thereby demonstrating the country’s dedication to fostering digital currencies.

However, not all of Thailand’s recent digital plans have been welcomed with open arms.

Discussing the Digital Wallet initiative unveiled by the government in April, there’s been a lot of discussion and controversy surrounding it. This program intends to offer financial assistance to 50 million citizens, giving out approximately $275 per person as digital funds that can be used at local businesses.

Although the Pheu Thai party had made this concept a significant pledge during their election campaign, it has faced criticism due to its perceived rigidity.

In order to be eligible for the program, individuals should fulfill certain conditions. These include being at least 16 years old, earning an income lower than 840,000 baht per year (which is approximately $23,710 USD), and having savings no more than 500,000 baht ($14,072).

Regardless, digital currency can only be utilized for specific essentials at nearby small enterprises, and it must be managed via an authorized government smartphone application.

Certain analysts from the Cato Institute contend that the characteristics of a Central Bank Digital Currency (CBDC) can be found within this program, despite the government’s assertion that it does not fall under the central bank’s control.

“The guidelines for spending the funds and the requirement to utilize the official application seem to make this project function similarly to Central Bank Digital Currencies (CBDCs), but without being explicitly labeled as such.”

Will Paetongtarn keep Thailand on the crypto-friendly path?

Previously, Thavisin, the forerunner of Paetongtarn, was recognized for championing digital assets. This has sparked curiosity among people as to whether Paetongtarn will continue this trend by adopting a similar strategy or if she will bring forth her unique approach instead.

Slava Demchuk, the CEO of AMLBot, provided unique perspectives to crypto.news, shedding light on potential future developments.

Paetongtarn’s father, ex-Prime Minister Thaksin Shinawatra, expressed positivity towards digital currencies. Under her guidance, it seems likely that she will carry on the Shinawatra family tradition of forward-thinking financial strategies.

Additionally, Demchuk noted that Thailand’s past acceptance of digital assets offers a robust base for Paetongtarn to expand upon.

1. Thailand has taken significant strides in crafting a favorable atmosphere for crypto investors and business owners. The Thai Securities and Exchange Commission’s forward-thinking approach has played a crucial role, setting up a strong legal structure that has drawn numerous blockchain firms to the nation. Considering Paetongtarn’s family background and the current framework, it is likely she will continue to propel Thailand in the realm of digital assets.

Simultaneously, according to Coindesk, Tanawat Sutunthivorakoon, CEO of Bitazza Thailand, opines that the resignation of Prime Minister Srettha will not significantly affect the nation’s digital asset regulatory framework.

Likewise, Sanjay Popli, as CEO of Cryptomind Advisory, pointed out that since the Pheu Thai party continues to govern, it seems improbable that significant modifications will occur in the current pro-cryptocurrency regulations.

Controversially distributing digital wallets is a complex additional step, as per The Nation’s report, and Paetongtarn emphasized its importance.

She stated, “The digital wallet scheme is a project we intend to use as a major economic stimulus,” suggesting that, despite its critics, the program may still play a central role in her government’s economic strategy.

At present, attention is focused squarely on Paetongtarn, as she takes on this pivotal position. Given her history and the robust base established by her predecessors, it appears that Thailand’s crypto sector may be looking towards a supportive future.

Yet, just like with any fresh leadership, there’s still a chance of unexpected moves, which keeps the worldwide crypto community vigilant about future developments.

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2024-08-27 20:03