TLDR
Thailand’s SEC is considering approval for direct Bitcoin ETFs on local exchanges, marking a major shift in the country’s crypto regulation as active trading accounts reach 270,000 in November 2024
SEC Secretary-General Pornanong Budsaratragoon emphasizes the need to adapt to global crypto adoption while ensuring proper investor protection
One Asset Management already launched a fund-of-funds for Bitcoin ETF exposure in June 2024, but Thailand has not yet allowed direct Bitcoin ETF investments
Former Prime Minister Thaksin Shinawatra proposed a crypto payment pilot project in Phuket focused on tourist digital payments
The Thai SEC is also exploring allowing companies to issue stablecoins backed by their own bonds to expand corporate debt market access
Thailand’s Securities and Exchange Commission (SEC) is moving toward approving exchange-traded funds that invest directly in Bitcoin, marking a new chapter in the country’s growing cryptocurrency sector. The development comes as active crypto trading accounts in Thailand reach nearly 300,000, according to recent data.
The Thai SEC reported that as of November 30, 2024, active crypto trading accounts reached 270,000, more than doubling from 117,000 in the previous month. This surge in trading activity coincides with Bitcoin reaching new price heights of $108,315.
SEC Secretary-General Pornanong Budsaratragoon announced that the commission will consider permitting both individuals and corporations to invest directly in local Bitcoin ETFs. “Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” Budsaratragoon stated, emphasizing the need to provide investors with more options while maintaining proper protections.
The move aligns Thailand with other Asian financial centers that have already embraced crypto-based investment products. Hong Kong, Singapore, and Australia have approved their own spot crypto ETFs, while Japanese banking leaders are pushing for similar approvals in their market.
One Asset Management, a Thai investment firm, launched a fund-of-funds in June 2024 that provides investors exposure to Bitcoin ETFs through overseas companies. However, Thailand has yet to permit local ETFs to invest directly in Bitcoin.
The Thai SEC is also exploring additional cryptocurrency innovations. The commission is considering allowing local companies to issue stablecoins backed by their own bonds, a move that could expand access to corporate debt markets and reduce costs.
Former Prime Minister Thaksin Shinawatra has emerged as a vocal crypto advocate, recently proposing a pilot project to develop Bitcoin payments in Phuket. Deputy Prime Minister Pichai Chunhavajira confirmed the project will focus primarily on facilitating digital payments for tourists in the region.
The potential Bitcoin ETF approval comes amid broader efforts to position Thailand as a digital asset hub in Southeast Asia. The country’s regulatory framework continues to evolve to accommodate growing investor interest in cryptocurrency products.
Thailand’s approach to cryptocurrency regulation has been measured but progressive. While embracing new financial products, authorities maintain vigilance over illegal activities in the sector. Recently, Thai authorities shut down a Bitcoin mining operation in the Phanat Nikhom district of Chonburi that had been stealing electricity.
The current regulatory landscape in Thailand allows for cryptocurrency trading under specific guidelines. The SEC oversees digital asset businesses to ensure compliance with anti-money laundering regulations and investor protection measures.
The consideration of Bitcoin ETFs represents a natural progression from existing crypto investment options in Thailand. Current regulations permit cryptocurrency trading through licensed exchanges, but direct investment vehicles like ETFs would provide a new avenue for institutional and retail investors.
Other countries in the region are closely watching Thailand’s moves in the cryptocurrency space. The potential approval of Bitcoin ETFs could influence regulatory decisions in neighboring Southeast Asian nations.
Thailand’s financial authorities are balancing innovation with investor protection as they evaluate these new investment products. The SEC’s approach includes careful consideration of risk management measures and market oversight mechanisms.
The timing of Thailand’s potential Bitcoin ETF approval coincides with growing global acceptance of cryptocurrency investment products. Several countries have recently approved similar investment vehicles, creating a broader international framework for crypto-based financial products.
Local market participants have expressed support for the SEC’s consideration of Bitcoin ETFs. The move could provide more structured investment options for those interested in cryptocurrency exposure.
The latest data from November 2024 shows active crypto trading accounts in Thailand reached 270,000, demonstrating sustained interest in digital asset investments among Thai investors.
