Thailand's SEC Updates Rules, Greenlights Bitcoin ETFs for Institutional Investors
Summary:
Thailand's securities regulatory body has updated its guidelines, enabling the creation of private funds focused on US-listed Bitcoin exchange-traded funds (ETFs). This development, however, is only applicable to institutional investors and ultra-wealthy individuals. Additionally, the new rules exclude retail investors, despite crypto trading's popularity in Thailand, with restrictions in place. The SEC permitted retail investors to purchase digital tokens backed by real estate or infrastructure projects earlier this year.
The regulatory body for Thailand's Securities and Exchange Commission (SEC) has revamped its guidelines, greenlighting the establishment of private funds centred on spot Bitcoin exchange-traded funds (ETFs) featured on exchanges in the US. This move, however, only caters to institutional investors and ultra-rich individuals, articulates a March 12 piece by the Bangkok Post.
Historically, the regulatory framework overseeing asset management firm investments did not encapsulate digital asset ETFs. The SEC Act only permitted asset managers to trade assets categorized as securities. Nonetheless, after the US securities regulator sanctioned spot Bitcoin ETFs in January, shares in these ETFs were designated as securities, not crypto assets, according to Thai legislation.
Pornanong Budsaratragoon, the SEC's secretary-general, stated that only certified investors will be allowed to interact with Bitcoin ETPs due to their inherent risk. With asset management companies expressing interest in digital assets, particularly Bitcoin and spot Bitcoin ETFs, Pornanong suggested that a cautious approach is needed when dealing with such high-risk ventures.
Although the recent regulatory adjustments do not extend to retail investors' engagement in spot Bitcoin ETFs, cryptocurrency trading continues to thrive in Thailand, albeit restricted. The state government prohibited the use of digital assets for transactions in March 2022, and the SEC disallowed cryptocurrencies for lending and investments in July 2023.
On the other hand, the SEC lifted certain constraints on retail investors, permitting them to buy digital tokens anchored by real estate or infrastructure projects in January. Bitkub, the largest cryptocurrency exchange in Thailand, offers 107 pairs and sees a daily volume of approximately $155 million, according to CoinGecko. Meanwhile, Binance ventured into the Thai market with a new exchange in January, albeit reserved for Thai nationals only.
Published At
3/12/2024 8:54:08 AM
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