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Thaksin Shinawatra Calls for Legalization of Online Gambling and Crypto Trade
The former prime minister of Thailand, Thaksin Shinawatra, has expressed his stance on allowing the trade of stablecoins and other tokens backed by tangible assets. He also urged regulators to legalize online gambling as a means to generate additional revenue stream
Thaksin stated that there is "no risk" in permitting the trading of stablecoins and other cryptocurrencies supported by physical assets. He further emphasized the need for the regulation of online gambling, which he believes could significantly boost Thailand’s tax revenue.
According to Thaksin, the Thai government has essentially missed out on nearly $4 billion (approximately 100 billion Thai baht) in potential tax revenue from online gambling. Speaking at an event on January 13, he called on the Thai authorities to legalize the online gambling ecosystem. The report was published by Reuters.
Thaksin’s recommendation came shortly after Thailand’s cabinet approved a draft law—the Entertainment Complex Business Act—which aims to legalize casinos and gambling operations. This legislation seeks to allow the establishment of entertainment complexes and casinos, effectively targeting the country’s underground gambling industry for tax collection.
Influence on Thai regulation through political legacy
Despite not being part of the current administration, Thaksin retains significant influence over Thailand’s political landscape. His daughter, Paetongtarn Shinawatra, currently serves as Thailand’s prime minister. When the draft law was approved by the Thai government, the current Prime Minister expressed a similar stance when announcing Singapore’s success in boosting its tourism and GDP.
Thailand’s legislative path forward
The Thai House of Representatives will need to approve the bill before it can be enacted into law. No deadline has yet been set for this process.
Thaksin highlighted that the Thai government is currently working on a comprehensive plan to regulate and tax online gambling. He explained that the potential revenue from online gambling could exceed $100 billion annually, given its estimated user base of two to four million individuals, with total savings reaching 300 billion Thai baht per year.
He emphasized that online gambling could be regulated through a "passport-type access system," similar to identification requirements for travel. He proposed creating a system where individuals holding valid passports (or equivalent credentials) can engage in online gambling activities within Thailand.
Thaksin’s advocacy for crypto adoption
Building on his earlier recommendations, Thaksin has called for the adoption of stablecoins and other non-volatile cryptocurrencies in Thailand. He has urged the Thai Securities and Exchange Commission (SEC) to allow the trading of stablecoins backed by tangible assets. He explained that introducing stablecoins would not pose significant risks, as they are designed to function similarly to traditional currencies.
Additionally, Thaksin suggested that Thailand’s city of Phuket could be a pilot test site for cryptocurrency payments. He expressed confidence in the stability of such systems, stating, "There will be no risk; it is just another currency in the world."
Rising interest in digital baht
In July 2024, Thailand distributed social benefits to 45 million citizens using digital money. The initiative aimed to stimulate economic recovery by providing relief through digital payment systems. This move reflects a growing trend worldwide towards the adoption of digital currencies.
Impact on Thailand’s economy
Thailand’s reliance on its entertainment and gambling industries has long been significant, contributing a substantial portion of the country’s GDP. However, with an aging population and declining birth rates, experts predict that these sectors may face challenges in the coming years without measures to attract younger consumers.
Thaksin’s advocacy for legalizing online gambling is part of a broader push by the Thai government to diversify its revenue streams and counteract economic slowdowns. His call for stablecoins and digital currencies aligns with global trends toward financial innovation and digital payment systems, which are increasingly expected in modern economies.
Conclusion
Thaksin’s remarks highlight Thailand’s potential to benefit from both legal gambling operations and the growing adoption of cryptocurrency technologies like stablecoins. By combining these measures, the Thai government may be able to address economic challenges while leveraging innovative financial solutions.
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