Thailand cracks down on Polymarket and looks to approve spot Bitcoin ETFs.

While the government cracks down on Polymarket for alleged illicit gaming operations, Thailand's SEC is examining proposals for stablecoins and spot Bitcoin ETF listings.

The Securities and Exchange Commission (SEC) of Thailand is thinking about permitting spot Bitcoin exchange-traded funds (ETFs) to list on regional markets for the first time.

SEC Secretary-General Pornanong Budsaratragoon stated on January 14 that the agency is determining whether or not institutional and ordinary investors might trade spot Bitcoin ETFs worth $99,400 locally.

According to Bloomberg, Pornanong stated, "Like it or not, we have to move along with more adoption of cryptocurrencies worldwide." "We must adjust and make sure that our investors have additional choices for crypto assets that are adequately protected."

Although direct Bitcoin ETF listings are still prohibited, Thailand's One Asset Management launched a fund-of-funds in June 2024 that provides exposure to foreign spot Bitcoin ETFs.

In an effort to increase access to debt markets, Thailand's SEC is also thinking about permitting companies with excellent credit ratings to issue stablecoins backed by corporate bonds. 

Thaksin Shinawatra, the de facto leader of the ruling Pheu Thai Party, has proposed offering stablecoins backed by government bonds to both individual and institutional investors. Additionally, Thaksin suggested setting up a Bitcoin sandbox for transactions pertaining to tourism in Phuket.

Thailand ranks 16th in terms of total adoption, indicating significant involvement in both retail and centralized cryptocurrency services, according to Chainalysis' 2024 Crypto Adoption Index. It ranks 19th in terms of the amount of decentralized financial transactions and 15th in terms of retail centralized service value. 

Related: $12 million was wagered by Polymarket traders on the performance of spot Bitcoin ETFs.

Cyber police in Thailand target Polymarket

According to Thai news site mgronline, Thailand's Technology Crime Suppression Division (TCSD) declared on January 14 that it intends to suggest shutting down Polymarket, a cryptocurrency-based prediction market.

The TCSD commander, Police Lieutenant General Trairong Phiwpaen, is said to have said:

Since it is illegal to use cryptocurrencies for trading and betting, "Polymarket, a global website that offers a variety of prediction services such as politics, sports, entertainment, and economics, was found to be illegal online gambling in Thailand." Trairong also stated that because blockchain transactions are anonymous and cross-border, crypto gambling makes law enforcement efforts more difficult. 

Other nations have taken action against Polymarket besides Thailand. In an effort to combat unregulated gaming platforms, Singapore disabled the website on January 12. 

After authorities started looking into Polymarket's compliance with local gambling rules, the company also withdrew from France in November 2024. After 17 people were arrested for using the platform to wager on a presidential election, Taiwan became the first state to ban it.

Polymarket is still operational in spite of these limitations. 

The Super Bowl Championship 2025 market alone attracted over $1.12 billion in trading volume, with the platform recording $515 million in trading volume in the first 15 days of 2025, according to Dune Analytics.

The above content is based on the article by William Suberg from Mehab Qureshi

From the above content, it can be seen that

Thailand's exploration of approving a spot Bitcoin ETF and its regulatory initiatives on stablecoins and cryptocurrency showcase a growing openness to digital assets. The consideration of a spot Bitcoin ETF by the Thai Securities and Exchange Commission (SEC) indicates the country's sensitivity to global cryptocurrency trends. This move could not only provide more investment avenues for local investors but also position Thailand as an important player in the digital asset market. However, the approval of such an ETF may face challenges related to market volatility and regulatory risks. Striking the right balance between innovation and risk management will be crucial for Thai authorities in this process.

Additionally, the Thai government’s focus on stablecoin regulation, particularly through the issuance of stablecoins backed by government bonds, reflects forward-thinking strategies to integrate digital currencies into traditional sectors. By ensuring market stability and boosting investor confidence, these measures could enhance Thailand's position as a fintech hub. Such initiatives could bring new vitality to the country's economy, benefiting both the financial sector and the wider population.

However, the government’s crackdown on Polymarket illustrates the complexities of digital assets' legality and regulation. While cryptocurrencies and blockchain technology are increasingly being adopted worldwide, their associated risks, such as gambling and illegal activities, remain significant concerns for regulators. Thailand's actions against platforms like Polymarket highlight the need to balance market regulation with protecting against financial risks and illegal practices.

Overall, Thailand is making significant strides in digital currency and blockchain technology regulation, but finding a way to promote fintech innovation while safeguarding against financial risks and illegal activities will be an essential consideration in future policy development.