Thailand is exploring the introduction of spot Bitcoin ETFs and stablecoins to enhance its financial system while addressing crypto-related concerns. The Securities and Exchange Commission (SEC) of Thailand is at the forefront of this initiative, signaling a shift towards greater cryptocurrency adoption.
The SEC is evaluating proposals for spot Bitcoin ETFs, which would provide new investment avenues for both retail and institutional investors. Pornanong Budsaratragoon, the SEC Secretary-General, highlighted the importance of adapting to the global crypto trend while ensuring investor protection.
Currently, Thai exchanges do not offer direct Bitcoin ETF listings. However, in June 2024, One Asset Management launched a fund-of-funds that gives exposure to international Bitcoin ETFs, indicating progress in this area.
Additionally, the SEC is looking into stablecoins backed by corporate bonds to improve access to the debt market. The ruling Pheu Thai Party has proposed government bond-backed stablecoins to diversify investment options for various investors. This move aims to integrate stablecoins into Thailand’s financial framework fostering economic growth.
In parallel, Thailand is scrutinizing crypto platforms like Polymarket, which faces allegations of operating as an illegal gambling site. The Technology Crime Suppression Division (TCSD) claims that Polymarket’s use of cryptocurrencies for prediction markets breaches Thai gambling laws. This crackdown mirrors similar actions in countries like Singapore, France, and Taiwan, where Polymarket has encountered regulatory challenges.
