As confirmed by SEC Secretary-General Pornanong Budsaratragoon, Thailand is considering allowing Bitcoin exchange-traded funds (ETFs) to list on its exchanges, marking a potential milestone in its bid to become a digital-assets hub, potentially granting permission for both individuals and institutions to invest in domestic Bitcoin ETFs.
In June 2024, Thailand’s One Asset Management offered a fund-of-funds that provided exposure to overseas Bitcoin ETFs. Meanwhile, approval for direct investment in Bitcoin through local ETFs has not been granted until the present date.
This possible policy shift aligns with broader efforts in the Asia-Pacific region, where countries like Singapore and Hong Kong have already established crypto-friendly environments. On a global scale, President-elect Donald Trump, during his campaign, declared intentions to transform the US into a crypto capital.
Pornanong emphasized the necessity for Thailand to align with the global increase in cryptocurrency adoption, highlighting the importance of adapting to provide investors with a wider array of crypto asset options, accompanied by appropriate protections.
In addition, amid easing restrictions, major digital-asset firms, including Binance Holdings Ltd, also see Thailand as a pivotal growth market.
Former Prime Minister Thaksin Shinawatra, a leading figure in the ruling Pheu Thai Party, recently expressed support for cryptocurrency initiatives, suggesting that Thailand should explore issuing stablecoins backed by government bonds and consider digital currency innovations.
He further mentioned that authorities are considering the implementation of a sandbox in Phuket to facilitate Bitcoin transactions specifically for tourism-related services.
The Securities and Exchange Commission (SEC) is contemplating authorizing local firms with robust credit ratings to issue stablecoins backed by their own bonds. This initiative aims to broaden access to corporate debt markets and reduce associated costs.
Digital-asset trading activity in Thailand is on the rise in tandem with a broader market rally that drove Bitcoin to a record high of $108,315 (approximately THB 3,761,779.95) in December.
Despite this growth, trading volume has yet to regain its pandemic-era heights, following a wave of crypto market bankruptcies in 2022. As of November 30, around 270,000 active crypto trading accounts were recorded in Thailand, according to SEC statistics.
