Thailand SEC Explores Bitcoin ETFs as Crypto Accounts Surge Toward 300K
Thailand’s Securities and Exchange Commission (SEC) is considering approving Bitcoin exchange-traded funds (ETFs) to strengthen the country’s growing cryptocurrency sector. If approved, this would mark the first time Bitcoin ETFs are listed on local exchanges, aligning Thailand with crypto-forward regions like Singapore, Hong Kong, and the U.S.
Surge in Active Crypto Accounts
As of November 30, 2024, Thailand recorded over 270,000 active crypto trading accounts, more than doubling the 117,000 accounts reported the previous month. This rapid growth underscores the increasing adoption of cryptocurrencies in the country.
Acknowledging this trend, SEC Secretary-General Pornanong Budsaratragoon stated that the regulatory body is exploring Bitcoin ETF approvals to give investors more options. “We must adapt to the global adoption of cryptocurrencies and ensure proper protection for our investors,” she emphasized.
Regional Competition and Global Trends
Thailand’s move follows similar developments in the Asia-Pacific region. Hong Kong, Japan, and Australia have already introduced spot crypto ETFs, and leaders in Japanese banking are urging regulators to approve Bitcoin and Ethereum ETFs.
Thailand previously took a step toward crypto exposure in June 2024 when One Asset Management launched a fund-of-funds providing access to overseas Bitcoin ETFs. However, the country has yet to allow locally listed ETFs to invest directly in Bitcoin, the world’s largest cryptocurrency by market cap.
Expanding Crypto Innovation
Beyond ETFs, the Thai SEC is exploring additional measures to support the crypto ecosystem. These include allowing local companies to issue stablecoins backed by their bonds, a move aimed at expanding access to corporate debt markets and reducing costs.
The SEC’s efforts align with broader initiatives to integrate cryptocurrencies into Thailand’s economy. In December, former Prime Minister Thaksin Shinawatra proposed a pilot project to facilitate Bitcoin payments in Phuket, primarily targeting tourists to simplify digital transactions in the region.
Challenges and Regulatory Actions
Despite its enthusiasm for the crypto market, Thailand continues to enforce regulations. Recently, authorities shut down an illegal Bitcoin mining operation in Chonburi’s Phanat Nikhom district. Investigations are ongoing, with arrest warrants expected for those involved.
Thailand’s potential Bitcoin ETF approval and expanding regulatory initiatives position the country as a key player in the Asia-Pacific cryptocurrency market, catering to rising demand while maintaining investor protection.
