Thailand’s SEC Considers Approving Local Bitcoin ETFs

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For the first time, Thailand is contemplating the approval of Bitcoin exchange-traded funds (ETFs), with ambitions to become a prominent digital assets center in Asia as reported by Bloomberg. The Securities and Exchange Commission (SEC) has unveiled intentions to allow both individual and institutional investors to trade Bitcoin ETFs directly on local stock exchanges.

In June 2024, One Asset Management launched a fund-of-funds that provides indirect investment opportunities in overseas Bitcoin ETFs. Yet, investing in Bitcoin locally is still not an option. The new initiative aims to bridge this gap and demonstrates Thailand’s efforts to meet the increasing regional competition.

Singapore and Hong Kong have already set up thorough digital asset regulations, whereas under President-elect Donald Trump, the U.S. is pushing forward with its worldwide cryptocurrency plan.

Pornanong Budsaratragoon, holding the position of Secretary-General at the SEC, emphasized the increasing worldwide use of cryptocurrencies as a significant development. She stressed the necessity for adapting to this shift, broadening investment opportunities for Thai investors, and ensuring their protection through robust regulatory frameworks.

Pornanong Budsaratragoon, SEC Secretary-General, noted the rising popularity of cryptocurrencies across the globe. She suggested that we should embrace this change, offer more investment choices to Thai investors, and implement strict rules to keep their investments secure.

Crypto Adoption Surges in Thailand

1) Thailand is becoming a prime location for digital asset companies, with Binance Holdings Ltd and other firms drawn by the country’s flexible regulatory environment. Key political figure Thaksin Shinawatra of the Pheu Thai Party advocates for increased cryptocurrency usage, suggesting the development of stablecoins supported by government bonds and the integration of digital currencies into tourism.

To improve accessibility and reduce corporate bond-related expenses, the Securities and Exchange Commission (SEC) is considering allowing creditworthy companies to create stablecoins that mirror their bonds. Previously reported, regulatory bodies are also investigating a Bitcoin transaction testing ground in Phuket, with the goal of incorporating cryptocurrency into tourism-related services.

By November 2024, Thailand had approximately 270,000 active cryptocurrency trading accounts, indicating a growing curiosity even amidst global market hurdles. The record high of Bitcoin at $108,268 in December rekindled excitement, but trading has yet to reach levels seen before the 2022 crypto collapses.

Source: Bloomberg

Thailand Shifts Stance on Crypto

As an analyst, I’ve observed Thailand’s regulatory landscape evolving over time. In March 2024, the Securities and Exchange Commission (SEC) made a significant shift by granting permission for asset management firms to establish funds investing in US-based Bitcoin Spot Exchange Traded Funds (ETFs), catering to institutional investors. Expanding access further, One Asset Management introduced its fund-of-funds offering by June, as previously reported by Coinspeaker. Contrastingly, the regulatory body maintained a cautious stance in January, indicating no immediate plans to facilitate domestic spot crypto ETFs within the country.

Regardless of personal feelings, the increasing use of cryptocurrencies globally is something we must accept and adapt to,” emphasized Budsaratragoon, underscoring a practical perspective on global developments.

International cryptocurrency platforms such as Binance have initiated their activities within Thailand. In collaboration with Gulf Innova, Binance is set to debut its crypto exchange services in early 2024 through Gulf Binance, a joint venture. The arrival of these global players emphasizes Thailand’s strategic importance and potential for growth in the digital finance sector.

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2025-01-15 14:24