Thailand’s Securities and Exchange Commission (SEC) is considering expanding its approval of Bitcoin ETFs to include retail investors and institutions. Currently, only institutional investors and high-net-worth individuals are allowed to invest in Bitcoin ETFs through private funds.
ETFs are diversified investment funds traded on a stock exchange. They allow investors to pool funds to invest in various assets. A Bitcoin ETF tracks the price of Bitcoin, providing a regulated and convenient way to invest in the crypto without directly owning it. Investors can gain exposure to BTC’s performance by investing in a Bitcoin ETF.
Why Consider Retail Investors?
The SEC’s consideration of Bitcoin ETFs for retail investors is part of Thailand’s broader effort to adapt to the growing adoption of cryptocurrencies worldwide. Pornanong noted, “Like it or not, we have to move along with more adoption of cryptocurrencies worldwide.” The country aims to provide investors with more options in crypto assets while ensuring proper protection.
Interestingly, Thailand’s crypto market has been gaining momentum, with digital-asset trading activity picking up in line with the global rally. According to the latest SEC data dated November 30, the country had approximately 270,000 active crypto trading accounts, indicating over 150% increase from the previous month.
Meanwhile, Thaksin Shinawatra, a vocal crypto advocate and leader of Thailand’s ruling party, suggested that the country explore issuing stablecoins backed by government bonds and consider other digital currency avenues. In response to this suggestion, the SEC now plans to allow local firms with strong credit ratings to issue new stablecoins backed by their bonds.
Additionally, Thai authorities are considering launching a pilot project on Phuket, the country’s largest island, to test and regulate Bitcoin transactions for tourism-related services.
Thailand Frowns at Polymarket and Illegal Miners
While the Thai regulator is considering allowing retail investors to trade Bitcoin ETFs, its cybercrime authorities plan to ban Polymarket, a decentralized prediction marketplace, as it is considered an online gambling website, which is illegal in the country. The authorities believe that suspending Polymarket is crucial to preventing crypto’s use in illicit activities.
The country has also frowned at illegal Bitcoin mining operations, which have been linked to power outages and other disruptions. Its authorities have been actively fighting unauthorized mining activities as part of ongoing efforts to regulate and oversee the crypto industry.
