Following last week's historic approval of spot bitcoin ETFs (Exchange Traded Funds) by the US Securities and Exchange Commission (SEC), investors around the world are wondering about the possibility of this financial product is launched in their countries.
A local source published a report on January 17 stating that Thailand's SEC has rejected ETF trading in the country “for the time being.”
Thailand Regulator Rules on bitcoin ETFs
Since the US SEC approved the listing of 11 bitcoin ETFs, Thai brokerage firms have encouraged investors to invest directly in US spot bitcoin ETFs such as report Explain.
Thailand's SEC, however, has said it does not plan to allow ETF launches in the country for now, stating:
The SEC has been closely monitoring these developments, but at the moment we do not have a policy that allows spot bitcoin ETFs to be established in Thailand.
Despite the rejection of spot bitcoin ETF launches in Thailand, the regulator maintains that investors still have the option to invest in digital assets through already authorized national exchanges that are governed by the Digital Assets Decree, which guarantees “fair and transparent” trade for profit. of Thai investors, as noted by the regulator.
Thailand currently has 9 licensed digital asset exchange operators offering cryptocurrency investments that follow the exchange's listing rules. However, the SEC does not oppose clients investing in foreign products through securities companies, but these companies must ensure that investors receive appropriate investment advice.
Securities companies can provide services to retail clients to invest in foreign products, but they must have the same characteristics as products that can be offered for sale in Thailand.
Finally, the SEC expressed its desire to “monitor developments, supervision and operations in various areas to develop new policy guidelines for ETF supervision” that could be adapted to the Thai context.
Thai regulations to protect investors
Cryptocurrency adoption in Thailand is among the highest in the world, ranking in the top 10 in the Chainalysis Global Cryptocurrency Adoption Index published in 2022 and 2023. The Thai government has implemented several regulations on cryptocurrency and asset products digital to protect their customers.
Thailand ranked 10th in The 2023 Global crypto Adoption Index released. Source: crypto-adoption-index/" target="_blank" rel="noopener nofollow">Chainalysis
Notably, in 2018, the government enacted the Digital Asset Business Emergency Decree to regulate digital asset transactions and all related activities in the country. The Decree covers the regulation of cryptocurrencies, digital tokens and other digital assets and applies to companies, individuals and all exchanges operating in Thailand.
Regarding some of the country's regulations, the Thai regulator commented the following in the report:
Digital asset operators must have a digital wallet management system and cryptographic keys to ensure business efficiency and that clients' digital assets are well protected.
Ultimately, the licensing requirements and strict rules and regulations that companies face when dealing with digital assets in Thailand create a challenging landscape for cryptocurrencies.
bitcoin traded at $42,757.9 in the daily chart. Source: BTCUSDT on TradingView.com
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