Thailand SEC Prepares to Introduce Comprehensive Crypto ETF Regulations
Thailand’s Securities and Exchange Commission (SEC) is on the verge of implementing a significant expansion in the realm of cryptocurrency investment. By devising new regulations, the SEC aims to facilitate the launch of local spot crypto-based exchange-traded funds (ETFs), extending the range beyond the widely recognized Bitcoin (BTC).
Thailand SEC’s Ambitious Plans to Diversify Crypto ETFs
The Secretary-General of the Thai SEC, Pornanong Budsaratragoon, recently announced that the regulatory body is actively working to broaden its crypto ETF offerings. The plan is to include an array of digital assets, moving past the current Bitcoin-centric options. In a conversation with Bloomberg, Budsaratragoon highlighted that the SEC is collaborating with other agencies to draft new regulations. These would empower local mutual funds and institutions to introduce digital asset-based ETFs by early 2026.
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Currently, Thai investors have the opportunity to engage with such financial products via licensed asset management companies that invest in international crypto ETFs. In a groundbreaking move in June 2024, the Thai SEC approved One Asset Management’s initiative to launch a fund-to-fund Bitcoin ETF, paving the way for institutional investors to access BTC-based investment options available overseas.
Earlier in January, the Secretary-General had signaled the agency’s interest in exploring the possibility of listing local spot Bitcoin ETFs to enhance the country’s digital asset market. The overarching goal is to allow both individual investors and institutional entities to partake in locally listed Bitcoin ETFs.
“It’s crucial to evolve and ensure our investors have diverse choices in crypto assets under secure conditions,” Budsaratragoon noted. The anticipated regulatory changes are set to surpass existing restrictions, creating an opportunity to incorporate a wider range of digital assets within the ETF framework.
“Our intention is to expand the criteria to include a basket of cryptocurrencies,” Budsaratragoon revealed to Bloomberg. “We aim to increase the supply of these crypto assets within ETFs.”
Thailand’s Strategic Move Towards Becoming a Crypto Hub
The Secretary-General also emphasized the growing investor interest in diversifying portfolios by integrating digital assets, particularly among the younger demographic. The agency’s primary mission is to “facilitate” this burgeoning demand within a structured legal framework.
In a bid to position itself as a leading regional crypto hub, Thai regulators have been vigorously working on policies to mainstream tokenized products as viable investment options. Earlier in the year, the SEC, in collaboration with the Bank of Thailand (BOT), launched a crypto sandbox in popular tourist regions. This initiative aims to enhance Thailand’s reputation as a tech-friendly destination, fostering innovation and boosting the economy through digital asset utilization.
The TouristDigiPay sandbox, inaugurated in August, is designed to streamline the conversion of digital assets into Thai Baht, specifically for foreign visitors. This initiative allows for the use of Bitcoin and other digital assets as a payment method in tourist areas, thereby promoting greater adoption.
Moreover, the regulatory body has proposed modifications to existing rules to give crypto exchanges more operational flexibility while enhancing investor protection and regulatory oversight. These changes will enable digital asset platforms to list utility tokens or tokens issued by related entities.
In parallel developments, Thailand’s Deputy Finance Minister, Julapun Amornvivat, unveiled a plan to eliminate capital gains tax on digital assets for a five-year period. Starting January 1, 2025, and running through December 31, 2029, investors selling assets through licensed crypto service providers will be exempt from profit taxation.
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