Key Points
- Thailand's financial regulator has approved investments in U.S. spot bitcoin ETFs for professional investors.
- Thailand has also attracted international crypto exchanges like Binance to establish operations within the country.
Thailand's financial regulatory authority has made amendments to existing regulations, enabling professional investors to invest in U.S. spot Bitcoin ETFs. This was reported by local media outlets.
Regulatory Changes
The Securities and Exchange Commission of Thailand has given the green light to asset management firms to introduce funds that invest in U.S. spot Bitcoin ETFs, specifically designed for institutional investors.
The SEC Secretary-General, Pornanong Budsaratragoon, revealed in a local press interview that asset management firms had requested permission to invest in crypto assets. Despite this, Budsaratragoon stressed the need for careful consideration due to the inherent high risk of direct investment in digital assets.
Previous Developments
This regulatory adjustment follows the regulator's statement in January about monitoring the progress of foreign spot crypto ETFs, despite having no intention to allow such products domestically.
In a related development, the Ministry of Finance in Thailand eased tax regulations on crypto trading last month. They suspended the obligation to pay a 7% value-added tax on profits from crypto trading. This tax exemption became effective from January 1, 2024, with no end date, as reported by local media.
Thailand has also become a hub for global crypto exchanges, such as Binance, to establish their operations. In January, Binance announced the launch of Gulf Binance, a collaboration between Binance and Thailand's Gulf Innova. This new venture began offering crypto exchange services to the Thai public following an invitation-only test in November.
