Thai Regulator Rejects Spot Bitcoin ETF, Citing Policy Lacuna

Thailand’s Securities and Exchange Commission (SEC) has denied the launch of spot Bitcoin ETFs in the country.

by Brian Danga. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: January 17, 2024 │ 8:00 AM GMT

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Thailand’s SEC has expressed its reservations for a spot Bitcoin ETF launch.
The regulator “does not plan to allow” ETF launches for now.
SEC said there is no policy framework to support the product launch.

According to a local media outlet report, Thailand’s Securities and Exchange Commission (SEC) has denied spot Bitcoin ETF trading in the country.

Typically, approved spot Bitcoin ETFs would allow Thai investors to invest in crypto through mutual funds registered with the stock exchange under the regulator’s supervision. However, the Thai SEC holds that it can’t support establishing these products in the country “for the time being.”

Thai SEC Nixes Spot Bitcoin ETF Trading

Per a Bangkok Post report dated January 17, the SEC said it “does not plan to allow” asset management firms to launch spot Bitcoin exchange-traded funds (ETFs) despite similar products launching in the U.S. last week.

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On January 10, the U.S. approved 11 issuers to launch their spot Bitcoin ETFs, including the world’s largest asset manager, BlackRock. In response to the development, the Thai regulator stated that it doesn’t have a policy framework to support a similar launch in the country.

“The SEC has been following these developments closely but we do not have a policy to allow spot Bitcoin ETFs to be established in Thailand for the time being,” the regulator said.

While the future of these products remains uncertain in Thailand, the regulator reiterated that Thai users could invest in digital assets via licensed domestic exchanges under the Digital Assets Decree, citing the benefits of fair and transparent trading.

Further, the regulator stated that securities companies could provide retail customers with foreign product investment services, “but they must have the same characteristics as products that can be offered for sale in Thailand.”