Thailand’s SEC Plans to Approve Bitcoin Exchange-Traded Funds
Thailand is considering the approval of Bitcoin exchange-traded funds (ETFs) to enhance its position as a digital assets hub in Asia. The Securities and Exchange Commission (SEC) plans to allow direct trading of Bitcoin ETFs for individual and institutional investors on domestic exchanges.
- One Asset Management previously launched a fund-of-funds offering indirect exposure to overseas Bitcoin ETFs.
- The proposal aims to provide direct investment options, addressing competition from Singapore and Hong Kong.
- Growing global cryptocurrency adoption has prompted the SEC to expand investment options while ensuring regulatory protections for investors.
Crypto Adoption Surges in Thailand
- Thailand attracts digital asset firms like Binance Holdings due to flexible regulations.
- Pheu Thai Party member Thaksin Shinawatra advocates for stablecoins backed by government bonds and digital currency integration in tourism.
- The SEC intends to allow high-rated firms to issue stablecoins linked to their bonds.
- By November 2024, about 270,000 active crypto trading accounts were recorded in Thailand.
- Bitcoin reached a high of $108,268 in December 2024, increasing interest despite lower trading volumes compared to pre-pandemic levels.
Thailand Shifts Stance on Crypto
- The SEC's stance has evolved since March 2024, allowing institutional funds to invest in US spot Bitcoin ETFs.
- In January, the SEC had no immediate plans for domestic spot crypto ETFs but acknowledged the need to adapt to global trends.
- Global exchanges like Binance have established operations in Thailand, indicating the country's strategic potential in digital finance.
Source: Bloomberg