“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” emphasized Pornanong Budsaratragoon, Secretary-General of the SEC.
Thailand is considering approving Bitcoin exchange-traded funds (ETFs) for the first time, aiming to position itself as a leading digital assets hub in Asia, according to Bloomberg. The Securities and Exchange Commission (SEC) has announced plans to enable both individual and institutional investors to directly trade Bitcoin ETFs on domestic exchanges.
In June 2024, One Asset Management introduced a fund-of-funds offering indirect exposure to overseas Bitcoin ETFs. However, direct investment in Bitcoin through local products remains unavailable. The new proposal seeks to address this gap, reflecting Thailand’s response to rising competition in the region.
Singapore and Hong Kong have already established comprehensive digital asset frameworks, while the United States, led by President-elect Donald Trump, is advancing its global cryptocurrency strategy.
Pornanong Budsaratragoon, Secretary-General of the SEC, highlighted the growing global adoption of cryptocurrencies. She underscored the importance of adapting to this trend, expanding investment options for Thai investors, and safeguarding them with strong regulatory measures.
Crypto Adoption Surges in Thailand
Thailand is emerging as a hub for digital asset firms, attracting Binance Holdings Ltd and others due to regulatory flexibility. Influential Pheu Thai Party figure Thaksin Shinawatra promotes wider crypto adoption, proposing stablecoins backed by government bonds and digital currency use in tourism.
In order to enhance accessibility and cut corporate debt costs, the SEC plans to let firms with strong credit ratings issue stablecoins linked to their bonds. As we reported earlier, authorities are also exploring a Bitcoin transaction sandbox in Phuket aimed at integrating cryptocurrency into tourism services.
By November 2024, Thailand recorded about 270,000 active crypto trading accounts, signaling growing interest despite global market challenges. Bitcoin’s record high of $108,268 in December reignited enthusiasm, although trading remains below pre-pandemic levels following the 2022 crypto bankruptcies.
Source: Bloomberg
Thailand Shifts Stance on Crypto
Thailand has gradually shifted its regulatory stance. In March 2024, the SEC allowed asset management firms to create funds investing in US spot Bitcoin ETFs for institutional investors. By June, One Asset Management expanded access through its fund-of-funds offering, as Coinspeaker earlier reported. However, in January, the regulator had maintained a cautious approach, stating it had no immediate plans to permit spot crypto ETFs domestically.
“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” reiterated Budsaratragoon, highlighting a pragmatic approach to global trends.
Global exchanges like Binance have already established operations in Thailand, with Gulf Binance, a joint venture between Binance and Gulf Innova, launching crypto exchange services in early 2024. The influx of international players underscores the country’s strategic potential in the digital finance space.
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