Thailand to Adopt Bitcoin ETFs, Considers Issuing Government-Backed Stablecoins

Thailand’s Securities and Exchange Commission (SEC) is considering allowing the listing of local Bitcoin exchange-traded funds (ETFs)

Thailand’s Securities and Exchange Commission (SEC) may soon allow the listing of local Bitcoin exchange-traded funds (ETFs), Bloomberg reported today (Wednesday). The confirmation came from the regulator’s Secretary-General, Pornanong Budsaratragoon, who said the instrument would enable individuals and institutions to invest directly in cryptocurrency.

Thailand to adopt Bitcoin ETFs

The regulator had already allowed One Asset Management (ONEAM) to launch a fund-of-fund Bitcoin ETF last June, offering exposure to overseas-listed Bitcoin ETFs. However, it only allowed investments from wealthy and institutional investors.

Now, the optimistic approach has emerged, as many neighboring Southeast Asian countries have also approved mainstream Bitcoin products. The industry received a significant boost when the US permitted 11 Bitcoin ETFs last January.

“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” Budsaratragoon said in an interview yesterday (Tuesday). “We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”

According to the regulatory data, there were about 270,000 active crypto trading accounts in the country by the end of 30 November 2024.

Moreover, Thaksin Shinawatra, the ruling Pheu Thai Party’s de facto chief and a crypto advocate, proposed that the country issue stablecoins backed by government bonds, allowing them to be accessible to retail and institutional investors. The SEC is also considering allowing local firms with strong credit ratings to issue stablecoins backed by their own bonds, which would widen access to the corporate debt market and lower costs.

Thai authorities are further exploring the creation of a Bitcoin transaction sandbox in tourist-heavy Phuket for tourism-related services.

Polymarket is offering “illegal gambling”

Despite the optimism about Bitcoin and stablecoins, Thailand’s Technology Crime Suppression Division (TCSD) has proposed banning Polymarket, which offers event contract betting with cryptocurrencies, as reported by the local news outlet mgronline.

“Polymarket, a global website that provides a variety of prediction services such as politics, sports, entertainment, and economics, was found to be illegal online gambling in Thailand because the use of cryptocurrency for trading and betting is against the law,” the local publication quoted Police Lieutenant General Trairong Phiwpaen, the commander of the TCSD (translated from Thai).

Recently, Singapore banned access to Polymarket, calling it an illegal gambling website. If the Singaporean authorities catch residents betting on the website, they might be penalized with a SGD 10,000 fine, six months in jail, or both.

Last November, the US Federal Bureau of Investigation also raided the home of Polymarket’s CEO, Shayne Coplan, and seized his phone. The Department of Justice is investigating Polymarket, as the platform allegedly allowed US users to bet on events.

The crypto platform also blocked French users from accessing it following reports of an investigation against it for flouting local gambling laws.