Taiwan, Thailand and Nigeria advance stablecoin regulatory frameworks
Key points
- Thailand announced a consultation on Thai Baht stablecoin regulation on 19 October, with Taiwan publishing draft rules and Nigeria issuing final regulations in the same period.
- Nigeria's framework is characterised as a direct attempt to regulate domestic usage of dollar stablecoins, making it the most consequential of the three for offshore stablecoin operators.
- Thailand's model mirrors Hong Kong's, including universal KYC for holders, a limited initial number of licences, no interest or incentives for holders, and mandatory redemption within one business day.
- Stablecoin reserves in Thailand would initially be restricted to bank deposits spread across several banks, with short-term government bonds possible at a later stage.
- Thailand's FX controls bar foreign currency stablecoin issuance and prohibit wallet providers from connecting to offshore digital asset exchanges, effectively closing off dollar stablecoin products in the Thai market.
Three jurisdictions moved stablecoin regulation forward in close succession. Thailand launched a consultation on Thai Baht stablecoin rules on 19 October, Taiwan published draft regulations this week, and Nigeria issued final rules, with Nigeria’s framework standing out as an explicit effort to bring domestic usage of dollar-denominated stablecoins under state control.
Thailand’s draft draws heavily from Hong Kong’s model, including a universal know-your-customer (KYC) requirement for all stablecoin holders, at least in the early stages. Hong Kong initially awarded licences to only two organisations, and Thailand has indicated it intends to follow a similarly restricted licensing approach, requiring applicants to demonstrate added value beyond existing payment methods. Stablecoin issuers would be prohibited from offering interest or incentives, and redemptions must be completed within one business day.
Reserves under Thailand’s proposed rules would initially be confined to bank deposits spread across multiple institutions, with short-term government bonds under consideration for a later phase. Thailand’s foreign exchange (FX) controls shape the framework significantly: foreign currency stablecoin issuance has no permitted pathway, and stablecoin wallet providers would be barred from connecting to offshore digital asset exchanges to prevent circumvention of those controls. The Bank of Thailand has also signalled it will not licence retail FX products for speculative purposes, a categorisation that would capture any Thai-issued US dollar stablecoin.