Thailand SEC Considers Approving Local Bitcoin ETFs: Bloomberg

Highlights:

• Thailand’s SEC is considering allowing Bitcoin ETFs, aiming to align with global crypto leaders.
• SEC Secretary-General emphasized the need for more crypto options with proper investor protection.
• Former Prime Minister Thaksin urged Thailand to legalize online gambling and embrace stablecoins.

The Thailand Securities and Exchange Commission (SEC) is considering the first-ever listing of Bitcoin (BTC) exchange-traded funds (ETFs) on local exchanges, Bloomberg reported on January 15. This move aims to keep pace with countries like Singapore, Hong Kong, and the U.S. in advancing the cryptocurrency sector.

Thailand may permit Bitcoin exchange-traded funds to list on local exchanges for the first time as the country vies to nurture a digital-assets hub https://t.co/QGGXnXKeBU

— Bloomberg Crypto (@crypto) January 15, 2025

SEC Secretary-General Pornanong Budsaratragoon stated that the regulator is considering allowing both individual and institutional investors to access local Bitcoin ETFs, providing direct exposure to the cryptocurrency. 

Pornanong stated:

“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”  

Furthermore, the Thai SEC is exploring the possibility of allowing local companies to issue stablecoins backed by their own bonds. According to Pornanong, this move aims to broaden access to corporate debt markets and reduce costs.

In March last year, Thailand’s SEC allowed asset management firms to create funds for U.S. spot Bitcoin ETFs. These funds were exclusively available to institutional investors. By June, One Asset Management introduced a fund-of-funds. Limited to professional and institutional investors, this offering provided exposure to international Bitcoin ETFs. Thailand has not yet permitted local ETFs to invest directly in Bitcoin. 

The recent move follows former Prime Minister Thaksin Shinawatra’s push to legalize crypto. He pointed to incoming US President Donald Trump’s crypto-friendly stance as an example. Thaksin suggested Thailand should adopt a more progressive approach to virtual assets and increase the use of stablecoins.

Thailand’s Crypto Market Growth

Digital asset trading in Thailand is growing and is driven by a broader market rally. BTC hit a record high of $108,315 (RM488,162) in December. However, trading levels remain well below their pandemic-era peak due to crypto bankruptcies in 2022 that weakened the market. As of November 30, the Thailand SEC reported at least 270,000 active crypto trading accounts. This number more than doubled compared to October’s total of just 117,000 active accounts.

Thailand to Launch Crypto Payment Pilot for Tourists in Phuket

Thailand plans to test cryptocurrency payments in Phuket, a popular tourist spot. The pilot program will give foreign visitors a new payment option. On January 8, Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced the news during a seminar hosted by the Thailand Marketing Association.

Pichai mentioned that the pilot will operate within the current legal framework without the need for changes to existing laws. In another report, Thaksin Shinawatra pointed out that the Thai government is losing nearly $4 billion (100 billion Thai baht) in tax revenue from online gambling. During an event on January 13, he urged Thai authorities to legalize the online gambling industry.

JUST IN: 🇹🇭 Thailand’s city Phuket to pilot #Bitcoin and crypto payments for tourists.

Nothing stops this train 🚀 pic.twitter.com/DtUhOjI4mL

— Bitcoin Magazine (@BitcoinMagazine) January 8, 2025