The Thai SEC has refused to allow trading of spot Bitcoin ETFs, saying that foreign-approved Bitcoin ETFs are still in their early stages and may not meet the economic needs of the Thai market.
The recent approval of 11 Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission has not persuaded the Thai Securities and Exchange Commission to follow suit.
The Thai regulator remains cautious and believes that these ETFs, which have gained traction in overseas markets, may not be suitable for the Thai economic landscape at this time.
A report from the Bangkok Post highlights the stance of the Thai SEC. “We are monitoring these developments, but there is currently no plan to allow the establishment of spot Bitcoin ETFs in Thailand,” said a Thai SEC official.
Still, Thai securities brokers are encouraging investors to consider investing in US-based Bitcoin ETFs. However, the Thai SEC emphasizes that investment advice to clients must be appropriate and consistent with products available in Thailand.
Bitcoin ETFs offer both retail and institutional investors the opportunity to invest in Bitcoin through traditional brokerage accounts, simplifying the investment process by eliminating the need for crypto wallets and exchanges.
The US move to allow Bitcoin ETFs marks a significant shift after a decade of reluctance due to various risks. This decision put the US in line with other countries such as Canada, Australia and Switzerland that had previously launched Bitcoin ETFs. What is noteworthy is that Bitcoin futures-based ETFs have existed in the US since 2021.
Aside from Thailand, South Korea's financial markets regulator confirmed that it would not allow trading of Bitcoin ETFs in its home market.
In related news, Binance launched its Thailand-specific exchange on January 16 in collaboration with Gulf Innova. However, Thailand's large expatriate community faces limitations in accessing this platform.
The registration process and KYC procedures require the use of a Thai National Digital ID (NDID). It is important to note that the Thai government does not issue these digital IDs to foreign residents residing in the country.
This move adds to Thailand's differentiated position in the crypto space. Contrary to what some Western media outlets have described as “crypto-friendly,” the Thai government announced in September that it would tax income from crypto trading abroad starting in January 2024.
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