Thailand considers approving Bitcoin ETFs as part of an effort to become a digital assets hub

Thailand is considering allowing Bitcoin exchange-traded funds (ETFs) to list on local exchanges for the first time as part of its strategy to establish itself as a digital assets hub. 

According to SEC Secretary-General Pornanong Budsaratragoon, the country’s Securities and Exchange Commission (SEC) is considering permitting both individuals and institutions to invest in domestic Bitcoin ETFs. 

While Thailand’s One Asset Management launched a fund-of-funds in June 2024, offering exposure to international Bitcoin ETFs, the approval for funds that invest directly in Bitcoin has not yet been granted.

Thailand seeks to compete in Asia-Pacific crypto race with policy shifts and innovation

The possible change in position coincides with intensifying competition to create a digital assets hub in the Asia-Pacific area. Supportive policies have been put in place in Singapore and Hong Kong. 

President-elect Donald Trump stated on the campaign trail that he wants to establish the United States as the global cryptocurrency center.

Speaking during an interview at her office, Pornanong said:

“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.” – Pornanong Budsaratragoon

Binance and other digital-asset companies are eyeing Thailand as a key growth market as the country loosens its restrictions. Thaksin Shinawatra, de facto leader of the ruling Pheu Thai Party, is a crypto advocate and recently proposed that Thailand consider issuing government-backed stablecoins for both retail and institutional investors. 

According to Pornanong Budsaratragoon, the SEC is exploring the possibility of allowing local firms with strong credit ratings to issue stablecoins backed by their own bonds. This would broaden access to corporate debt markets and reduce costs.

Thailand is exploring crypto payments and gambling reforms

Thailand plans to trial cryptocurrency payments in Phuket, one of its most popular tourist destinations, as part of a pilot program offering foreign visitors an alternative payment option. According to Nation Thailand, Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced the new initiative on Jan. 8 at a seminar organized by the Marketing Association of Thailand.

Pichai noted that the pilot will run within existing legal frameworks without amending current laws required to implement the trial. 

In other developments, the former prime minister of the country, Thaksin Shinawatra, has noted that the Thai government is missing out on almost $4 billion (100 billion Thai baht) in tax revenue from online gambling. Speaking at an event on Jan. 13, he urged Thai authorities to legalize the online gambling ecosystem.

This comes hours after the state’s cabinet approved a draft law—the Entertainment Complex Business Act—to legalize casinos and gambling. The law intends to allow the establishment of entertainment complexes and casinos and tax Thailand’s underground gambling industry.

As digital-asset trading in Thailand rises, fueled by the global crypto rally that saw Bitcoin reach a record high of $108,315 in December, the market remains far below its pandemic-era peak following a wave of crypto bankruptcies in 2022. According to SEC data, as of November 30, 2024, Thailand had around 270,000 active crypto trading accounts.

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