Thailand is changing its crypto rules. The Securities and Exchange Commission (SEC) allows private funds to invest in U.S. spot Bitcoin exchange-traded funds (ETFs). But there is a condition. Only institutional investors and ultra-wealthy individuals can participate.
It is a significant development for crypto investing rules in Thailand. It impacts investors and the overall market. The SEC recently amended regulations to let asset management firms launch private funds that invest in U.S. spot Bitcoin ETFs. It follows the U.S. SEC approving Bitcoin ETF trading on Jan 11. Strong inflows into U.S. spot Bitcoin ETFs boosted global investor confidence.
SEC secretary-general Pornanong Budsaratragoon said the move responds to growing institutional demand for digital asset exposure. However, she warned these high-risk investments require caution, Bangkok Post reported. The SEC approval aims to enable crypto interest while reducing risks.
Ms. Pornanong noted the SEC’s ongoing efforts enhance market supervision and investor confidence. It aligns with the Stock Exchange of Thailand’s proposed regulatory upgrades.
Thai Regulations Limit Bitcoin ETFs
However, Thai retail investors cannot directly access spot Bitcoin ETFs under the amended rules. The changes primarily accommodate accredited investors, excluding retail participation. It contrasts with Thailand’s popularity for retail crypto trading, although curbed by 2022-2023 regulations limiting certain activities.
While recent adjustments allow some retail investment in specific digital tokens, spot Bitcoin ETF access remains restricted for non-institutional investors in Thailand. Major exchanges like Binance operate, but regulatory hurdles remain for retail spot Bitcoin ETF exposure.
As Thailand updates crypto regulations, finding a balance between innovation and investor protection is crucial. Institutional investors gain U.S. spot Bitcoin ETF opportunities, warranting observation of broader market impacts from such regulatory decisions.
Globally, jurisdictions like South Korea and Hong Kong are also exploring crypto prospects. Hong Kong regulators currently process around ten applications, including from Harvest Finance, to introduce spot Bitcoin ETFs.
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