Thailand’s Securities and Exchange Commission (SEC) has made changes to its regulations, allowing for the launch of private funds that invest in spot Bitcoin exchange-traded funds (ETFs) traded on US exchanges. However, these private Bitcoin ETF funds will only be available to institutional investors and “ultra-high-net-worth individuals,” as stated in a report from the Bangkok Post on March 12. Previously, the regulations governing asset management firms did not cover digital asset ETFs. Under the SEC Act, asset managers were only allowed to trade assets classified as securities. However, after the US securities regulator approved spot Bitcoin ETFs in January, shares in these ETFs were reclassified as securities rather than crypto assets under Thai regulations.
The secretary-general of the Thai SEC, Pornanong Budsaratragoon, explained that only accredited investors will be permitted to have exposure to Bitcoin ETPs due to the high-risk nature of these investments. While asset management firms requested permission from the SEC to invest in digital assets directly, the regulator is cautious about allowing this due to the associated risks. In January, the Thailand SEC announced that asset management firms would not be allowed to launch their own spot Bitcoin ETFs within the country.
However, the latest rule changes do not extend to retail investors, who are now excluded from accessing spot Bitcoin ETFs. Retail crypto trading remains popular in Thailand, but it is subject to restrictions. The government outlawed the use of digital assets for payments in March 2022, and the SEC banned the use of cryptocurrencies for lending and investment in July 2023. However, in January, the SEC lifted restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects.
Thailand’s largest crypto exchange, Bitkub, offers 107 trading pairs and has a daily trading volume of about $155 million, according to CoinGecko. Binance also entered the Thai market in January, but its services are only available to Thai nationals.