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Thailand’s regulatory authorities are considering approving the first-ever spot Bitcoin exchange-traded funds (ETFs).
According to a recent Bloomberg report, the Thai Securities and Exchange Commission (SEC) aims to enable institutional and individual investors to access Bitcoin ETFs within the local market. Currently, the country offers limited exposure to Bitcoin through a fund-of-funds introduced by One Asset Management in mid-2024.
This fund invests in overseas Bitcoin ETFs, but direct investments in the original cryptocurrency remain restricted. The SEC’s Secretary-General, Pornanong Budsaratragoon, indicated that the commission is evaluating this restriction to provide investors with more crypto options.
The move is essential in keeping pace with regional competitors such as Singapore and Hong Kong. Specifically, these two countries have established supportive digital asset frameworks.
Push for Stablecoins and Innovation
In addition to exploring Bitcoin ETFs, Thailand is also considering issuing stablecoins backed by government bonds. This initiative, championed by Thaksin Shinawatra, the de facto leader of the ruling Pheu Thai Party, aims to benefit retail and institutional investors.
Notably, the SEC is reviewing stablecoins tied to corporate bonds and proposing that firms with strong credit ratings issue these tokens. The goal is to improve access to corporate debt markets while reducing associated costs.
Thailand’s Crypto Integration in Tourism
Meanwhile, Thailand’s government has also launched initiatives to integrate crypto into its tourism sector. Pichai Chunhavajira, the Deputy Prime Minister, announced plans to test crypto payments in select tourist cities.
The pilot project will begin in Phuket later this year and allow tourists to use Bitcoin and other crypto for transactions. This approach will enhance Thailand’s competitiveness in the global tourism market.
Notably, the project will operate within existing legal frameworks, requiring no immediate changes to current laws. Ultimately, Thailand aims to attract more visitors while maintaining its position in the evolving global market.