THAI SEC ALLOWS PRIVATE FUNDS TO INVEST IN BITCOIN ETFS WITH RESTRICTIONS

Thailand’s financial regulator has recently made it possible for certain investors to engage with U.S.-listed spot Bitcoin ETFs, introducing a specific caveat to the new ruling.

The Thai Securities and Exchange Commission (SEC) has revised its rules, now allowing the establishment of private funds that can invest in spot Bitcoin ETFs available on U.S. markets. This privilege, however, is exclusively available to institutional investors and individuals with significant wealth.

Revision of Regulations for Spot Bitcoin ETFs

The SEC’s Secretary-General, Pornanong Budsaratragoon, revealed that this development emerged from the latest board meeting. Following this decision, asset management companies are now authorized to create private funds focused on U.S.-listed spot Bitcoin ETFs, mirroring the recent authorization by the U.S. SEC.

Pornanong noted, “There was a demand from asset management companies to gain exposure to digital assets, particularly Bitcoin and spot Bitcoin ETFs. However, we had to thoroughly assess the risks before allowing direct investment in digital assets by these firms.”

Previously, the rules governing asset management companies’ investments did not cover digital asset ETFs, prompting the SEC to establish new regulations that enable such investments. Moreover, according to the SEC Act, asset managers are limited to offering trading services for assets recognized as securities.

The reclassification of shares in spot Bitcoin ETFs as securities, following their approval by the U.S. securities regulator in January, rather than as cryptocurrency assets, under Thai regulations facilitates this new investment opportunity, albeit restricted to a specific investor base.

Improvements to the Stock Market Regulations

Additionally, Pornanong mentioned the SEC board’s approval of improvements in the supervision of the stock market and the introduction of new regulations for listing on the Stock Exchange of Thailand (SET).

These initiatives are designed to bolster investor confidence in the Thai market and support the SET’s long-term development. The enhancements cover the regulation of short selling, naked short selling, program trading, high-frequency trading, and efforts to mitigate stock price volatility.

In January, the Thai SEC had barred asset management companies from launching their spot Bitcoin ETFs domestically, stating, “We’ve been closely monitoring these developments, but there’s currently no policy to permit the establishment of spot Bitcoin ETFs in Thailand.” The latest amendments do not extend the availability of spot Bitcoin ETFs to retail investors.

Read more from the blog

News

3 May 2023

StoneBlock CEO: Nervous investors will be eliminated from the market

News

22 Apr 2024

ANIMOCA BRANDS HOLDS $558M IN CRYPTO ON BALANCE SHEET 

News

22 Apr 2024

CRYPTOJACKER ACCUSED OF $3.5M FRAUD AGAINST TWO CLOUD PROVIDERS