Thailand’s SEC makes it simpler to invest in specific digital assets.

Thailand’s SEC Eases Regulations on Digital Tokens

Thailand’s Securities and Exchange Commission (SEC) has revised regulations to facilitate investment in digital tokens, aiming to safeguard investors while increasing accessibility to digital assets.

March 2, 2023 Meeting:
The SEC Committee convened and proposed new rules to enhance the safety of digital asset investments, addressing public concerns and soliciting feedback.

Key Changes:

  1. Lifting Retail Investor Restrictions: Retail investors can now invest in real estate and infrastructure-related digital tokens without the previous 300,000 baht limit.
  2. Enhanced Regulations for Digital Wallet Providers: The SEC reviewed regulations for companies offering digital wallet services, ensuring sufficient shareholder expertise and compliance with independence rules.
  3. Approval Requirement for Digital Asset Expansions: Companies seeking to expand their digital asset offerings must obtain approval from the SEC.
  4. Prohibition of Collaboration with Illegal Operators: Businesses involved in digital assets are prohibited from collaborating with illegal operators to safeguard investor interests.

The new regulations will be effective from January 16, 2024, following their announcement in the Royal Gazette.

Thailand’s Stance on Bitcoin ETFs

SEC’s Decision:
Thailand’s SEC has opted not to permit the trading of Bitcoin Exchange-Traded Funds (ETFs), citing concerns about the early stage of foreign-approved Bitcoin investments and their suitability for the local market.

Broker Recommendations:
Despite the SEC’s stance, brokers in Thailand are advising clients to consider investing in Bitcoin ETFs from the US, aligning investment advice with available products in Thailand.

Bitcoin ETFs in the US:
The US has recently approved Bitcoin ETFs, signaling a shift in attitude toward cryptocurrencies. This move brings the US in line with countries like Canada, Australia, and Switzerland, which have already introduced Bitcoin ETFs.

Global Perspective:
South Korea’s financial regulator has also declined to allow Bitcoin ETF trading, echoing Thailand’s cautious approach.

Latest stories

You might also like...