Thailand’s Securities and Exchange Commission has updated its regulations to allow the introduction of private funds investing in spot Bitcoin (BTC) exchange-traded funds (ETFs) from United States exchanges.

The private Bitcoin ETF funds are now open for investment to institutional investors and “ultra-high-net-worth individuals,” as per a report from the Bangkok Post.

The amendment was necessary as previous regulations did not cover digital asset ETFs under the purview of asset management firms. However, following the approval of spot Bitcoin ETFs by the United States securities regulator, these products are now classified as securities rather than crypto assets in Thailand.

Thai SEC secretary-general, Pornanong Budsaratragoon, stated that only accredited investors will have access to Bitcoin exchange-traded products (ETPs) due to their high-risk nature.

While asset management firms requested permission to invest in digital assets like Bitcoin and spot Bitcoin ETFs, the decision to restrict access to accredited investors was made after careful consideration of the risks involved.

Despite the popularity of retail crypto trading in Thailand, retail investors are currently excluded from investing in spot Bitcoin ETFs due to the high-risk nature of these products.

Retail use of digital assets for payments was prohibited by the government in March 2022, and the SEC issued a ban on the use of cryptocurrencies for lending and investment in July 2023.

However, in January, the SEC lifted restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects. The move aimed to provide more opportunities for retail investors within the digital asset space.

Bitkub, the largest crypto exchange in Thailand, offers 107 pairs and boasts a daily volume of approximately $155 million, according to CoinGecko. Binance also entered the Thai market with a new exchange accessible only to Thai nationals.

As the landscape of digital assets continues to evolve, it is essential for investors to stay informed about regulatory changes and opportunities within the market. For more updates on the latest developments in the cryptocurrency space, continue exploring Global Crypto News.

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