Thailand's SEC Considers Approving Local Bitcoin ETFs to Expand Crypto Investment Options

SEC Secretary-General Pornanong Budsaratragoon emphasized the need for adaptation in the rapidly evolving crypto landscape, stating,

Thailand’s Securities and Exchange Commission (SEC) is reportedly considering approving Bitcoin exchange-traded funds (ETFs) to be listed on local stock exchanges, expanding investment options and potentially establishing the nation as a digital asset hub.

According to a recent article by Crypto Daily, SEC Secretary-General Pornanong Budsaratragoon highlighted the need for adaptation in the rapidly evolving crypto landscape.

“We must adapt to the changing landscape and consider the approval of Bitcoin ETFs in Thailand. This move will cater to the increasing demand for crypto investment options and further establish Thailand as a digital asset hub,” said Budsaratragoon.

The consideration of Bitcoin ETFs marks a significant shift in Thailand’s regulatory approach toward crypto assets. Previously, the SEC had expressed concerns regarding the volatility and risks associated with cryptocurrencies, leading to a ban on initial coin offerings (ICOs) and strict measures for digital asset exchanges.

Despite the shift, the approval process for Bitcoin ETFs is expected to be stringent, with a focus on ensuring investor protection and market stability. The SEC will likely evaluate factors such as the underlying asset’s liquidity, volatility, and the ETF provider’s track record.

Moreover, the article notes that the development comes amid a broader surge in crypto activity in Thailand. In January 2024, Gulf Binance, a joint venture between Binance and Gulf Innova, launched public crypto exchange services in the country.

Furthermore, in March 2024, asset management firms were permitted to launch funds targeting U.S. spot Bitcoin ETFs, which are primarily intended for institutional investors. One Asset Management capitalized on this opportunity by launching a fund-of-funds in June, offering exposure to international Bitcoin ETFs but restricting access to only professional investors.

The article also highlights the political influence and regional dynamics impacting crypto regulation in Thailand. While the SEC is considering approving Bitcoin ETFs, the country’s central bank has reportedly expressed reservations.

Additionally, Thailand’s positioning within Southeast Asia, where nations like Singapore and Hong Kong are already crypto hotspots, is said to be influencing the regulatory landscape.

Overall, the consideration of Bitcoin ETFs by Thailand’s SEC demonstrates a changing regulatory environment and increasing demand for crypto investment options in the country. If approved, these ETFs could provide both individual and institutional investors with greater access to crypto markets, further boosting Thailand’s status as a digital asset hub.