Thailand regulators are considering approval for exchange-traded funds that invest directly in Bitcoin for the first time in history in order to boost the nation’s budding crypto sector.
According to a Bloomberg report published on Jan. 15, the Thailand Securities and Exchange Commission might allow Bitcoin ETFs to list on local exchanges for the first time as the country attempts to keep up with other countries like Singapore, Hong Kong and the U.S. in terms of developing its cryptocurrency sector.
As of Nov. 30, 2024, data from the Thailand SEC shows that there are at least 270,000 active crypto trading accounts. The number of active accounts in November more than doubled compared to that of the previous month, which only reached 117,000.
Acknowledging the importance of the crypto sector in Thailand moving forward, Secretary-General Pornanong Budsaratragoon said the SEC will consider letting individuals and corporations invest directly in local Bitcoin ETFs.
“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection,” said Pornanong.
Thailand is not the only one. Leaders of major banks in Japan have also been pushing for its regulators to allow crypto-backed ETFs, specifically Bitcoin ETFs and Ethereum ETFs. Other countries in the Asia-Pacific region like Hong Kong and Australia, have approved their own spot crypto ETFs.
Despite this eagerness to dive into the Bitcoin investment market, Thailand authorities recently closed down a Bitcoin mining farm set up in the Phanat Nikhom district of Chonburi. As previously reported by crypto.news, the Thailand Crime Suppression Division is in the process of obtaining arrest warrants for those involved.
Back in June 2024, Thailand’s One Asset Management had already launched a fund-of-funds that offers investors exposure to Bitcoin ETFs linked to companies overseas. However, Thailand has yet to allow local ETFs to invest directly in Bitcoin, the current largest cryptocurrency by market cap.
In addition, the Thai SEC is also considering allowing local companies to issue stablecoins backed by their own bonds in order to expand access to corporate debt markets and minimize costs, according to Pornanong.
Last December, Thailand’s former prime minister and crypto advocate Thaksin Shinawatra proposed a pilot project to develop Bitcoin payment in Phuket. Deputy Prime Minister Pichai Chunhavajira confirmed that the pilot project will mainly focus on tourists, making it easier for them to do digital payments in the region.
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