Thai SEC rejects Bitcoin ETFs; investors shift focus to international markets
Thailand’s Securities and Exchange Commission (SEC) has rejected the trading of spot Bitcoin exchange-traded funds (ETFs), stating that the foreign-approved Bitcoin ETFs are still in their early stages and may not be suitable for the Thai market’s economic needs.
Despite the recent approval of 11 Bitcoin ETFs by the US securities market regulator, the Thai SEC remains cautious and believes that these ETFs, which have gained popularity in foreign markets, may not be appropriate for the current economic landscape in Thailand.
The Bangkok Post reported on the Thai SEC’s position, with a representative stating, “We are keeping an eye on these developments, but there are currently no plans to allow the establishment of spot Bitcoin ETFs in Thailand.”
However, Thai securities brokerages are encouraging investors to consider investing in US-based Bitcoin ETFs. The Thai SEC emphasizes that investment advice provided to clients must be suitable and in line with the products available in Thailand.
Bitcoin ETFs provide a way for retail and institutional investors to invest in Bitcoin through traditional brokerage accounts, simplifying the investment process by eliminating the need for cryptocurrency wallets and exchanges.
The approval of Bitcoin ETFs by the US marks a significant change after years of hesitation due to various risks. This decision puts the US in line with other countries like Canada, Australia, and Switzerland, which have already introduced Bitcoin ETFs. It is worth noting that the US has had Bitcoin futures-based ETFs since 2021.
In addition to Thailand, the South Korean financial market regulator has also confirmed that it will not allow the trading of Bitcoin ETFs in its domestic market.
In other news, Binance has launched a Thailand-specific exchange in collaboration with Gulf Innova. However, Thailand’s large expatriate community faces restrictions in accessing this platform. The registration process and KYC procedures require the use of a Thai national digital ID (NDID), which is only granted to Thai individuals and not to foreigners residing in the country.
This move further demonstrates Thailand’s complex position in the crypto space. Despite being labeled as “crypto-friendly” by some Western media, the Thai government announced in September that it would tax overseas crypto trading income starting January 2024.
