Thai SEC unmoved by US Bitcoin ETFs approval

The Securities and Exchange Commission (SEC) of Thailand stated that it is not currently considering the possibility of permitting asset management firms to launch Bitcoin Exchange-Traded Funds (ETFs) in the country. This comes in the wake of the United States SEC endorsing the establishment of 11 Bitcoin ETFs the previous week.

On January 11, rule changes were approved by the US SEC, allowing for the formation of listed ETFs, a significant milestone for Bitcoin and the wider cryptocurrency industry. BlackRock, the world’s most substantial asset manager, was among the approved issuers.

This endorsement has spurred Thai securities brokerage firms to promote investment in US spot Bitcoin ETFs directly to Thai investors.

The Thai SEC has been closely monitoring these developments. However, it has been confirmed that there are no current plans to permit the establishment of spot Bitcoin ETFs in Thailand.

Spot Bitcoin ETFs, which are licensed, offer investors the opportunity to invest in the cryptocurrency via mutual funds registered with the stock exchange under SEC supervision. Despite this, the SEC has emphasised that Thai investors can invest in digital assets via domestic exchanges licensed by the SEC under the Digital Assets Decree. The aim is to ensure fair and transparent trading for investors, the Thai regulator stated.

Presently, nine licensed digital asset exchange operators are offering investment services in cryptocurrencies, including Bitcoin, by the exchange’s listing rules.

The SEC has outlined various regulations designed to protect investors. For instance, digital asset operators are required to manage a digital wallet system and cryptographic keys to ensure business efficiency and the secure protection of customers’ digital assets, the regulator stated.

“Securities firms can offer services to retail customers to invest in foreign products, but these products must possess similar characteristics to products that can be offered for sale in Thailand.”

In this context, the SEC has emphasised that business operators must ensure investors are receiving suitable investment advice. With spot Bitcoin ETFs still in their early stages overseas and potentially not yet generating direct economic value suitable for the current Thai context, the SEC has expressed a desire to observe developments, supervision, and operations in various areas to further develop policy guidelines for ETF supervision, reported Bangkok Post.