Thailand SEC Revises Regulations for Bitcoin ETF Launch

Thailand’s financial watchdog has revamped regulations, now green-lighting U.S.-based spot Bitcoin exchange-traded funds (ETFs) for the nation’s professional investors. Reports from the Bangkok Post unveil that the Securities and Exchange Commission of Thailand has given the nod to asset management companies, allowing them to establish funds specifically geared towards investing in these U.S. spot Bitcoin ETFs. This decision caters primarily to institutional investors.

SEC’s Cautious Approach to Crypto Assets

The SEC’s top official, Pornanong Budsaratragoon, shared insights with a local media outlet. Budsaratragoon highlighted the growing demand from asset management entities eager to dive into crypto assets. The regulator expressed a cautious stance, noting the importance of a measured approach when considering direct investments in digital assets due to their inherent high risks.

This strategic move traces back to the SEC’s January announcement. At that time, the regulatory body indicated it was keeping a close eye on the progress of spot crypto ETFs abroad. However, it had no immediate plans to introduce such financial products within Thailand.

Tax Revisions and Crypto Exchanges in Thailand

Furthermore, Thailand’s Ministry of Finance took a significant step towards crypto inclusivity last month. It revised tax regulations on cryptocurrency trading, effectively removing the 7% value-added tax on crypto trading gains. This tax relief, which kicked off on January 1, 2024, is currently without a defined end date, as per the Bangkok Post.

Thailand has rapidly become a hub for global cryptocurrency exchanges, with industry giant Binance making significant inroads. In January, Binance, in collaboration with Thailand’s Gulf Innova, launched Gulf Binance. This joint venture marked the introduction of crypto exchange services to the Thai public, following an exclusive testing phase in November.