Thailand SEC approves investment in cryptocurrency ETF amid Bitcoin boom

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Thailand SEC approves investment in cryptocurrency ETF amid Bitcoin boom

Thailand’s Securities and Exchange Commission (SEC) took a cautious step toward cryptocurrency adoption on Monday by allowing asset managers to invest in Bitcoin exchange-traded funds (ETFs) listed on U.S. exchanges for spot trading. But now only institutional investors and high net worth individuals have access to these funds.

Under existing regulations, digital asset ETFs were not included in the investment regulations of asset managers, and under SEC law, asset managers can only trade securities.

However, U.S. securities regulators’ approval of a spot Bitcoin ETF in January led the SEC to recognize it as a security rather than a cryptocurrency asset under Thai regulations. SEC Secretary-General Pornanong Budsaratragoon said regulators will only allow professional investors to access Bitcoin through ETPs. This is because it is considered highly speculative.

“Asset managers have requested the SEC to provide exposure to digital assets, particularly Bitcoin, and the issuance of spot Bitcoin ETFs, but due to the high risk, asset managers should carefully consider whether to allow them to invest directly in digital assets,” he said. . Porn farm.

Thailand’s previous stance on Bitcoin ETF

In January 2024, Thailand’s SEC said it would not allow asset management firms to create physical Bitcoin ETFs, but so far the regulator has insisted that people invest in the digital asset only through approved local exchanges.

“The SEC has been closely monitoring these developments but, for the time being, has no policy permitting a spot Bitcoin ETF to be established in Thailand,” the regulator said.

Recently, the SEC has taken a move in a cryptocurrency-friendly direction by easing restrictions on investment by retail investors in certain asset-backed tokens. They are also now calling for custodial wallet management by a dedicated entity as part of a more liberal approach to cryptocurrency regulation.

Balancing innovation and investor protection

The SEC’s decision balances its focus on protecting investors while addressing the potential of cryptocurrencies. Regulators are trying to reduce the risks that come with volatile digital asset markets by limiting institutions and ultra-wealthy individuals.

However, retail investors may not have exposure to spot Bitcoin ETFs under the new regulations. Although retail cryptocurrency trading is limited in Thailand, it is still popular. The government banned digital assets for payments in March 2022, and the SEC banned the use of cryptocurrencies for loans and investments in July 2023.

Pornanong said the rules governing asset manager investments do not currently apply to digital asset EFTs, but the structure should be changed to allow them to be used as a means of unlocking such investments through alternative investment funds.

Bitcoin all-time high investment timing

The Thai SEC’s decision to adopt a cryptocurrency ETF comes at the right time as the price of Bitcoin hit a new all-time high of $72,850, creating a great opportunity for Thai investors. As of March 12, the price of Bitcoin has surpassed $72,000, further fueling interest in this growing asset class.

The SEC board also approved a proposal by the Stock Exchange of Thailand (SET) to upgrade its supervisory framework and stock market listing rules to drive long-term growth of the Thai market by providing better protection to investors and enhancing risk. Manage stocks and control stock price volatility.

Thailand’s SEC has introduced digital assets into the financial ecosystem, which will encourage other countries to follow suit. In this way, it not only reflects how investing has been changing, but is also a sign that virtual currencies can transform the global economy.

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Thailand SEC approves investment in cryptocurrency ETF amid Bitcoin boom

Source: https://www.coinspeaker.com/thailand-sec-crypto-etf-bitcoin/