Thailand’s Securities and Exchange Commission (SEC) has made amendments to its rules to permit the launch of private funds investing in spot Bitcoin exchange-traded funds (ETFs) traded on U.S. exchanges. Here are the key points:
Only institutional investors and “ultra-high-net-worth individuals” will have access to these private Bitcoin ETF funds, as reported by the Bangkok Post.
These amendments come after the U.S. securities regulator approved spot Bitcoin ETFs in January, defining shares in such ETFs as securities under Thai regulations.
Regulatory Considerations:
SEC secretary-general Pornanong Budsaratragoon highlighted the high-risk nature of Bitcoin exchange-traded products (ETPs) and stated that only accredited investors will be permitted access.
Asset management firms had requested SEC approval for exposure to digital assets like Bitcoin and spot Bitcoin ETFs, but the regulator is cautious due to the associated risks.
The amendments do not include provisions for retail investors to access spot Bitcoin ETFs, leaving them out of the equation.
Retail crypto trading is popular in Thailand but remains restricted due to government regulations, including the outlawing of using digital assets for payments in March 2022 and restrictions on cryptocurrency lending and investment in July 2023.
Despite restrictions, the SEC lifted some limitations in January, allowing retail investors to purchase digital tokens backed by real estate or infrastructure projects.
Bitkub, the largest crypto exchange in Thailand, offers a variety of trading pairs and has a significant daily trading volume.
Binance also entered the Thai market with a new exchange in January, but access is limited to Thai nationals.
Thailand’s SEC has amended rules to allow private funds to invest in spot Bitcoin ETFs, catering primarily to institutional investors and ultra-high-net-worth individuals. However, retail investors remain excluded due to regulatory concerns and restrictions. Despite limitations, the crypto market in Thailand continues to show signs of activity and growth.
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