Jai Sahu
The Securities and Exchange Commission (SEC) of Thailand has revised the criteria for investing in digital tokens, relaxing certain limitations.
In a meeting convened on March 2, 2023, the SEC Committee endorsed principles for enhancing investment criteria and associated criteria for digital asset business operations. The objective is to establish robust investor protection mechanisms while addressing the risks inherent to digital assets.
Following the completion of the draft announcement in September 2023, which garnered favorable feedback from a majority of commentators, the SEC initiated a public comments period, as stated in an official announcement.
Based on the feedback received, the SEC has refined the regulations governing investments in digital tokens and related services.
Notably, the commission has removed investment restrictions previously imposed on retail investors for digital tokens backed by real estate or generating real estate income streams (real estate-backed ICOs) and digital tokens with infrastructure operations or revenue streams (infra-backed ICOs).
Previously, retail investors were restricted to a maximum investment of 300,000 baht per offering.
Thailand’s SEC Eases Digital Asset Investment Restrictions
The SEC has also reviewed the criteria for establishing custodial wallet provider businesses, permitting them to offer services to digital asset business operators.
However, it mandates that these businesses must have major shareholders, who may be listed companies or subsidiary companies, possessing the necessary expertise and experience in safeguarding clients’ securities or other financial assets.
Compliance with SEC-specified independence criteria is also obligatory.
Furthermore, digital asset business operators wishing to engage in additional business activities must obtain permission from the SEC.
Lastly, digital asset business operators are prohibited from collaborating with illegal digital asset operators.
The SEC’s announcement, inclusive of the specified criteria, has been officially published in the Royal Gazette and will be effective from January 16, 2024, onwards.
Thai’s SEC Denies Spot Bitcoin ETFs
The SEC of Thailand has clarified its stance, disallowing the trading of spot Bitcoin exchange-traded funds (ETFs) within the country.
This decision is rooted in the Thai SEC’s belief that foreign-approved Bitcoin ETFs are still in their nascent stages and may not align with the economic requirements of the local market.
“We are monitoring these developments, but currently, there is no plan to permit the establishment of spot Bitcoin ETFs in Thailand,” a representative informed the Bangkok Post.
Despite the Thai SEC’s stance, securities brokerages in Thailand are encouraging investors to explore investing in Bitcoin ETFs based in the United States.
Nonetheless, the Thai SEC has cautioned that investment advice provided to clients must be suitable and in accordance with the available products in Thailand.
Bitcoin ETFs offer a convenient avenue for both retail and institutional investors to gain exposure to Bitcoin via traditional brokerage accounts, eliminating the need for crypto wallets and exchanges.
The approval of Bitcoin ETFs in the United States marks a significant shift in perspective after years of hesitancy due to various cryptocurrency-related risks.
This decision aligns the US with other nations like Canada, Australia, and Switzerland, which have already introduced Bitcoin ETFs. It’s noteworthy that the US has had Bitcoin futures-based ETFs available since 2021.
In addition to Thailand, the financial market regulator in South Korea has also affirmed that it will not permit the trading of Bitcoin ETFs on the domestic market.